In a small bowl stir together the bread crumbs, 2 teaspoons of the fresh basil or 1/2 teaspoon of the dried basil, the peper, and paprika. Add melted butter; toss to coat.
Arrange chicken in a 2-quart rectangular baking dish. Sprinkle chicken pieces with the crumb mixture, pressing onto the chicken to coat. Bake in a 400 degree oven for 20 to 25 minutes or untol no longer pink (170 degrees F).
Meanwhile, in a small saucepan stir together milk, flour, bouillon granules, and remaining dried herb (if using) until combined. Cook and stir until thickened and bubbly. Cook and stir for 1 minute more. Stir in remaining fresh herb (if using). Serve over chicken.