Cut chicken into bite-size pieces; set aside.
In a medium bowl, stir together sugar and cornstarch. Stir in the orange peel and orange juice; set aside.
In a small bowl, combine flour, salt and black pepper. In another small bowl, stir together water and egg. Coat chicken with flour mixture. Dip into the egg mixture; coat again with flour mixture.
Meanwhile, in a wok, a deep-fat fryer or a heavy 3-quart saucepan, heat 1-1/2 to 2 inches of cooking oil or shortening to 365 degrees F. Fry chicken, a few pieces at a time, for 3 to 4 minutes or until chicken is no longer pink, turning once. Remove chicken from hot oil. Drain on a wok rack or on paper towels. Keep warm in a 300 degree F oven while frying remaining chicken.
Pour the 1 tablespoon oil into a deep, heavy 12-inch skillet. (Add more oil as necessary during cooking.) Preheat skillet over medium-high heat. Add onion; stir-fry for 1 minute. Add red pepper; stir-fry for 1 minute. Add green onions; stir-fry about 1 minute more or until vegetables are crisp-tender. Push from center of the skillet.
Stir sauce and add to the center of the skillet. Cook and stir until thickened and bubbly. Add orange sections; cook and stir about 1 minute more or until heated through. Add deep-fried chicken, stir gently until coated with sauce. Serve immediately over hot cooked rice. If you like, garnish with additional green onion.
If you like, omit coating and frying the chicken pieces and add 12 ounces frozen cooked breaded chicken chunks, baked according to package directions.