In a shallow dish, stir together the all-purpose flour, salt, and pepper. Set aside.
In a bowl, stir together the evaporated milk and the water. Set aside.
In a 12-inch skillet, heat enough lard, shortening, or cooking oil over medium heat to make 1/2-inch depth. Dip the chicken pieces in the milk mixture. Then, roll chicken in the flour mixture.
Cook the chicken in hot fat, uncovered, about 10 minutes or until the pieces are golden on the bottom. Turn and cook the pieces about 15 minutes more or until meat is easily pierced with a fork and no longer pink.
Remove chicken pieces from the skillet. Drain the chicken on paper towels. Serve warm. Makes 4 to 6 servings.