In a bowl combine ¼ cup almond flour, ½ cup coconut and salt & pepper. Mix to combine.
In a separate bowl, combine the ground chicken, ½ cup almond flour, onion powder, garlic powder, egg yolk and salt & pepper. Mix well until everything is incorporated.
In a sauté pan, melt coconut oil on medium heat. Take about 2 tablespoons worth of the chicken mixture and roll into a ball and then coat with the coconut and almond mixture. Repeat with the remaining chicken. You should make about 15 to 18 chicken nugget/balls.
In small batches place nuggets into heated coconut oil and cook on each side for about 3 to 4 minutes. Transfer balls to a parchment lined bake pan and place in oven for 4 to 5 minutes to allow the chicken to cook through. Repeat with the remaining chicken nuggets.
Heat coconut oil in a saute pan over medium heat. Place minced shallots and garlic in sauce pan until soft. Stir in remaining ingredients and simmer over low heat for 15-20 minutes.