1. Set the Instant Pot to sauté on low. Add the olive oil and heat.
2. Add the panko bread crumbs, ¼ teaspoon of the salt, and ½ teaspoon of the garlic powder. Cook, stirring continuously until slightly darkened, 2-3 minutes. Transfer crumbs to a plate and set aside. Wipe out the Instant Pot so that no crumbs remain.
3. Pour the water into the Instant Pot. Set trivet or steamer basket over water.
4. Arrange thighs in a single layer on the trivet. Season with Italian seasoning, remaining ½ teaspoon of salt, remaining ½ teaspoon of garlic powder, and the pepper.
5. Set Instant Pot to pressure cook on high for 10 minutes, making sure the valve is in Sealing position.
6. After the 10 minutes of pressure cooking, do a natural release for 5 minutes. Then turn the valve to Venting and allow remaining steam to escape.
7. Remove lid from Instant Pot. Remove chicken and trivet from Instant Pot. Drain out any water and discard.
8. Return chicken to the Instant Pot. Pour the tomato sauce over chicken. Sprinkle with mozzarella and Parmesan cheese.
9. Set Instant Pot to Sauté. Put lid in place. Cook until tomato sauce is hot and cheese is melted, 3-4 minutes.
10. Transfer chicken with sauce and cheese to serving plate. Sprinkle with toasted panko crumbs.

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