Mix milk & egg in a small bowl or saucer. Pour some of the bread crumbs on another plate. Roll the chicken breasts in the milk/egg mixture then in the bread crumbs until well coated. Place chicken breasts in baking dish; sprinkle some leftover bread crumbs on any "bare" spots then discard the rest.
Pour the bottle of Italian dressing over the chicken. Cover with foil and bake at 350 for 35-40 minutes, until done.