Preheat oven to 325 degrees. Season chicken with salt and pepper.
Place the 1½ cups cornstarch and the beaten eggs into 2 separate bowls. Dip the chicken pieces into the beaten egg, then into the cornstarch.
Heat the canola oil in a large skillet over medium high heat. Cook the chicken, working in batches if necessary, until it is golden brown (don’t worry if it’s not cooked through, it will finish cooking in the oven). Place the chicken into a greased, 9×13 inch baking dish.
In a medium bowl, whisk together the soy sauce, rice vinegar, Sriracha, sesame oil, garlic, brown sugar and 1 tablespoon of cornstarch. Pour over the chicken and toss to coat. Sprinkle the red pepper, jalapeno and peanuts over the chicken.
Bake for 40-45 minutes, or until chicken is cooked through, stirring once halfway through baking time. Before serving, stir in the chopped green onions.