Marinate the boneless chicken pieces in a mixture of 1 ¼ cups dill pickle juice and 1 cup milk for at least 30 minutes.
Preheat the oven to 450 degrees F for the biscuits.
Combine 3 tablespoons powdered sugar, 2 tablespoons all-purpose flour, 1 tablespoon peanut oil, and 1 teaspoon chili powder. Coat the marinated chicken in this mixture.
Fry the breaded chicken in hot peanut oil until golden and cooked through, about 8 minutes per side.
For the biscuits, whisk together the dry ingredients: 2 ½ cups self-rising flour, 1 tablespoon baking powder, and 1 teaspoon kosher salt.
Cut in ¼ cup cold unsalted butter into the flour mixture until it resembles coarse crumbs.
Gently fold in 1 cup of cold buttermilk and 2 tablespoons of honey to form the dough.
Roll out dough to 1 inch thick and cut with a floured biscuit cutter.
Place biscuits on a baking sheet lined with parchment paper and bake until lightly golden brown, about 15 minutes.
Brush the tops of the warm biscuits with softened butter.