Bring a pot of salted water to a boil. Heat 1 tablespoon olive oil in a saucepan over medium heat; add the garlic and cook 1 minute. Add the tomato sauce, basil and 1 cup water. Bring to a simmer, then reduce the heat to medium low and cook until thickened, about 12 minutes.
Meanwhile, pour some flour into a shallow bowl. Beat the egg with 1/4 cup water in another bowl. Mix the breadcrumbs, parsley and 1 tablespoon parmesan in a third bowl. Coat the chicken with the flour, then with the egg mixture and breadcrumbs. Transfer to a plate.
Preheat the broiler. Cook the pasta as the label directs; drain. Meanwhile, heat the remaining olive oil in a large ovenproof skillet over medium-high heat. Add the chicken; cook until golden, 3 minutes per side. Top with the sauce, mozzarella and the remaining 1 tablespoon parmesan. Transfer to the broiler until melted, about 2 minutes. Transfer the chicken to plates. Toss the pasta with the remaining sauce in the skillet and serve with the chicken. Top with basil.