Orange Chicken

4 raw chicken breasts-cut up
1 egg
1 cup corn starch
1/2 cup oil
1 1/2 cup sugar
1/2 cup ketchup
1 cup vinegar
2 tablespoons soy sauce
1 teaspoon garlic powder
2 cups uncooked rice
4 cups water

Dip chicken pieces into egg and then into cornstarch. Cook battered chicken in oil until done. Drain onto a paper towel and discard oil. In a large bowl combine sugar, ketchup, vinegar, soy sauce and garlic powder; mix well. Pour sauce mixture into pan with cooked, battered chicken and simmer for 15-20 minutes. Combine rice and water in a medium pan; bring to a boil, then cover and simmer for 20 minutes. Serve sauce over rice.