Skin chicken breasts. Discard skin. Use a knife to cut meat away from 1 side of the breastbone. Scrape meat away from rib bones on 1 side. Repeat on other side of breast. Repeat with remaining breast; discard bones. Remove tendon from each breast half.
Combine egg and water. In shallow bowl or pie plate combine wafers, seasoned salt, and paprika. Dip chicken into egg mixture, then roll in crumb mixture, patting to coat chicken well.
In a 10-inch skillet cook chicken in hot oil or shortening over medium-high heat for 8 to 10 minutes or until tender. Turn occasionally to brown evenly.
Meanwhile, in a large saucepan cook squash and green pepper in hot butter or margarine 6 minutes or until squash is tender. Stir in tomato and salt; heat through. Arrange the vegetables on a warm serving platter. Place the chicken atop the vegetables. Serves 4.