Place milk and egg in a shallow bowl and beat together. Place flour in a shallow dish, a pie plate works well, stir in salt.
Dredge chicken pieces in flour, dip in egg and milk and back in flour. Place on a baking sheet.
Heat oil (about 2 inches) in a deep skillet or Dutch oven to 350°.
Fry chicken in batches until browned and chicken is cooked to 165° internal temperature. Remove to paper towel lined wire rack to drain.
for sauce:
In a medium sauce pan, add water, chicken broth, and vinegar.
In a small bowl combine sugar and cornstarch together, stir into liquid. Add soy sauce, sesame oil and garlic.
Cook over medium-high heat, stirring often, until it comes to a boil. Lower heat and cook just until thickened.
Serve chicken over rice and top with sauce and sesame seeds.