In a mixing bowl, combine the shredded cheddar cheese, diced green chilies, finely chopped red onion, chili powder, cumin, garlic powder, salt, and black pepper. Mix well until all the ingredients are evenly incorporated.
Take a small amount of the cheese mixture, about a tablespoon, and shape it into a small nugget. Repeat with the remaining mixture, shaping them into bite-sized nuggets. Set aside.
Prepare a dredging station with three bowls: one with all-purpose flour, one with beaten eggs, and one with breadcrumbs.
Take a cheese nugget and coat it in flour, shaking off any excess. Then dip it into the beaten eggs, allowing any excess to drip off. Finally, roll it in breadcrumbs, pressing gently to ensure an even coating. Place the coated nugget on a plate or baking sheet. Repeat this process with the remaining nuggets.
Preheat your air fryer to 375°F (190°C) for about 3-5 minutes, following the manufacturer's instructions.
Lightly spray the air fryer basket with cooking spray to prevent sticking.
Place the coated chili cheese nuggets in a single layer in the air fryer basket, ensuring they are not touching each other. If necessary, cook them in multiple batches to avoid overcrowding.
Air fry the nuggets at 375°F (190°C) for approximately 5-7 minutes, or until they are golden brown and crispy. Flip them halfway through the cooking time to ensure even browning on both sides.
Once cooked, remove the nuggets from the air fryer and transfer them to a serving plate. Allow them to cool slightly before serving.
Serve the Air Fryer Chili Cheese Nuggets with your favorite dipping sauce, such as ranch dressing, salsa, or spicy aioli.
Enjoy these delicious and crispy Air Fryer Chili Cheese Nuggets as a tasty snack or appetizer!