Sesame chicken is not really authentic Chinese food, but it is a classic dish served in Chinese restaurants throughout the United States. Lacking the Chinese takeout that so many folks take for granted out on the ranch, I learned to make this favorite takeout dish at home.
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Place the milk and egg in a shallow bowl and beat together. Place the flour in a shallow dish and stir in the salt. Dredge chicken pieces in flour, dip in the egg and milk mixture, and then dip them back in flour. Heat the vegetable oil (about 2 inches) in a deep skillet or Dutch oven to about 350 degrees. Fry chicken in batches until browned and chicken is cooked through. Remove to paper towel lined plate to drain.
In a medium sauce pan of medium-high heat, add the water, chicken broth, and vinegar. In a small bowl combine sugar and cornstarch together and stir into the liquid. Add the soy sauce, sesame oil and garlic. Cook the sauce over medium-high heat, stirring often, until it comes to a boil. Lower the heat and cook until just thickened. Pour the sauce all over the chicken and sprinkle with toasted sesame seeds. Serve with rice.