In a food processor, pulse the macadamia nuts until fine but slightly coarse. In a small bowl, combine macadamia nuts, panko crumbs, chili powder, cayenne pepper, paprika, salt and pepper. In another bowl, whisk the egg and set aside.
In a large skillet, heat the olive oil over medium heat.
Dredge each tilapia fillet in the egg and coat in the macadamia spice panko mixture.
Carefully place the tilapia fillet in the heated pan, and sear on each side 2-3 minutes or until brown on each side and cooked through.