Heat oven to 400 degrees F. Line jelly roll pan, 15 1/2 x 10 1/2 x 1 inch, with aluminum foil.
Mix cereal, baking mix, paprika, salt, and pepper in 2-quart resealable plastic food-storage bag. Shake about 6 chicken pieces at a time in bag until coated. Shake off any extra crumbs. Place chicken pieces in pan. Spray with cooking spray.
Bake uncovered 20 to 25 minutes or until coating is crisp and chicken and is no longer pink in center.
While chicken is cooking, prepare sauce by mixing yogurt, peanut butter, milk, soy sauce, and red pepper, if desired, in a nonstick skillet.
Cook sauce over medium heat 3 to 4 minutes, stirring occasionally, until mixture begins to thicken. Serve sauce with chicken.