Preheat oven to 400 degrees F. Line a baking sheet with heavy-duty aluminum foil. Place a cooling rack over pan and spray rack with nonstick cooking spray.
In a shallow dish, combine bread crumbs, cheese, 2 tablespoons olive oil, thyme, salt and pepper, to taste. In a separate shallow dish, combine mustard, water, salt and pepper, to taste, and remaining olive oil. Coat each chicken breast with mustard mixture; dredge each in bread crumb mixture. Place on prepared rack in pan. Bake for 25 to 30 minutes, or until chicken is golden brown. Serve immediately.