In a large bowl, whisk the milk, eggs, and 1/2 teaspoon of salt. Add the chicken chunks, cover, and marinate in the refrigerator for at least 30 minutes or up to 4 hours.
In a shallow dish, whisk the flour, 2 tablespoons of paprika, 3/4 teaspoon of salt, and 1/4 teaspoon of black pepper. Remove the chicken from the marinade and coat each piece in the flour mixture. Discard the remaining marinade.
Heat the vegetable oil in a large skillet over medium-high heat. Fry the chicken in batches for 6 to 8 minutes per batch, turning occasionally, until crispy. Transfer the fried chicken to a paper towel-lined plate.
Preheat your oven to 350°F (175°C). In a medium bowl, whisk the cream of chicken soup, sour cream, water, 1 teaspoon of salt, 1/4 teaspoon of paprika, and 1/4 teaspoon of black pepper.
Spread a thin layer of the soup mixture on the bottom of a 9x13-inch baking dish. Arrange the fried chicken pieces in an even layer. Pour the rest of the soup mixture over the chicken.
Sprinkle half of the mozzarella cheese over the sauce. Top with the cooked bacon and sautéed mushrooms, then add the remaining cheese.
Cover the dish tightly with aluminum foil. Bake for 30 minutes. Remove the foil and bake for an additional 15 to 20 minutes, until the sauce is bubbly and the chicken reaches a safe internal temperature of 165°F (74°C).