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1. Place the vinegar, white sugar, water, fish sauce, sherry, garlic, and chili in a small sauce pan over medium-high heat. Bring to a boil, reduce the heat to medium, and let boil unto reduced by half, about 10 minutes, stirring occasionally. Whisk in the cornstarch and water mixture and let boil until sauce thickens, about 2 minutes. Remove from heat and set aside.
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2. In a shallow bowl, mix together the flour, 1 cup of cornstarch, and baking powder. Place the beaten egg in another shallow bowl. Pat the wings dry with a paper towel. Working in batches of a few wings at a time, toss the wings in the flour mixture, then coat in the egg, and toss again in the flour mixture, continue until all wings are battered.
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3. Preheat oven to 200 degrees. Fill a 12-inch cast iron skillet with 1-inch of peanut oil. Bring the oil to 375 degrees over medium-high heat. Place half of the wings in the oil and fry until golden brown on first side, then flip and continue to fry until second side is browned, 5-7 minutes per side. Remove wings to a paper towel lined plate, then place in the oven to stay warm. Repeat with the second batch of wings.
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4. Place all of the wings in a large bowl. Pour in the reserved sauce and toss to coat. Place wings on a plate an serve immediately.
