In a large bowl, combine egg and milk. Add shrimp and stir to coat.
In a separate bowl, combine flour, breadcrumbs, salt, black pepper, onion powder, garlic powder, and basil. Pour half of the bread coating into a large resealable plastic bag. Add shrimp, seal bag, and shake until shrimp is thoroughly coated.
Return shrimp to the egg mixture; coat. Pour the second half of the breading into the plastic bag. Add shrimp and shake until thoroughly coated.
Refrigerate shrimp for 20 minutes to ensure the coating adheres to the shrimp.
Heat oil in a large skillet over medium high heat. Working in batches, add shrimp and fry, turning halfway through, until golden brown, about 2-4 minutes.
Remove shrimp from oil and place on paper towels to drain.
Drizzle sauce over the shrimp or serve alongside as a dipping sauce.