Preheat air fryer to 360°F for 5 minutes.
Use a sharp knife to cut a deep slit into each chicken breast lengthwise. Stuff each pocket with one slice of cheese (cut in half) and whole fresh basil leaves. Use toothpicks to secure the open edges closed.
In a shallow bowl, add breadcrumbs, Italian seasoning, garlic powder, Parmesan cheese, salt and pepper. Mix well.
In a separate shallow bowl add flour. In a third shallow bowl, add 2 eggs and beat well.
Dredge the chicken into the flour, followed by the egg and finally the panko breadcrumb mixture. Make sure to evenly coat both sides. Place chicken into air fryer basket.
Cook chicken at 360°F degrees for 20 minutes. When cooking cycle is complete, top each breast with sauce and one slice of cheese (you may need to cut in half). Continue to cook for 1 additional minute until cheese is melted.
Remove and sprinkle with fresh chopped basil before serving.