Heat oven to 400°. In large bowl, combine turkey, taco seasoning, jalapeno and yellow banana peppers and egg, mixing lightly but thoroughly. Divide turkey mixture into 16 portions; shape each portion around a cheese cube, completely covering cheese.
In shallow dish, beat egg white with water until blended. Place chips in second shallow dish. Dip each meatball into egg white mixture, then into chips to coat completely. Press each meatball with palm into flattened nugget shape, generously coating both sides of nugget with chips.
Spray large baking dish with nonstick cooking spray. Place nuggets in baking pan; spray tops of nuggets generously with nonstick cooking spray. Bake 15-20 minutes, or until meat registers 160° on an instant-read thermometer; meat should not be pink and juices should run clear.