If you do save the oil, I recommend straining it through a coffee filter into a jar or jug (glass, not plastic) and putting it in the fridge. It may get cloudy, but that’s okay - when you warm it up it will get clear again.
I wouldn’t use a lid, especially if you’re pan-frying (see below). If you’re concerned about spattering, you can buy a spatter-guard; it looks like a piece of window screen in a round frame with a handle. They let the steam out but stop the spatters. (of course, it’s one more thing to clean, but you’d have that with a lid, too.)
The only tip I can think of is to make sure your pan is deep enough that oil doesn’t come too close to the lip of the pan. It will bubble up when you put the chicken in.
Keeping your oil at a good temperature is important, and that’s easier to do with a thermometer, at least at first. You’ll develop a feel for it eventually. NOTE: the temperature mentioned above in pulykamell is too high - you want to keep it at or a bit above 325 degrees. Too low, and your breading will soak up too much oil and be greasy; too high, and the outside will brown before the chicken is done. Related note: don’t crowd too much food in the fryer at once, or it will lower the temp of the oil too much.
As for how much oil to use, for deep-fried chicken you want to be able to completely submerge the chicken pieces. This ensures a nice even coating. You can also do pan-fried (aka southern-fried) chicken by putting enough oil to come about halfway up the food in a cast-iron skillet and frying that way, turning the chicken occasionally. It’s a very different item from deep-fried chicken, but both are delicious. I recommend either peanut oil or melted shortening…both stand up to heat well and will not impose their own flavor on the food.
The above recipe sounds like a good basic starting point. If you want to elevate your chicken to another plane, however, try this (you’ll need to start the day before).
1 chicken, cut up into frying parts (or use a package of the parts of your choice)
1 quart buttermilk
1 cup flour
3-4 eggs, beaten
2 cups breadcrumbs
1 cup uncooked cream of wheat
Oil for frying
Rinse chicken, pat dry and put in a bowl with a cover or a large ziploc bag. Pour buttermilk over chicken and make sure it’s completely coated; place in the refrigerator and marinate overnight.
When ready to cook chicken, heat oil or shortening in pan to 325 degrees. Remove chicken from buttermilk and wipe clean with paper towels. Discard buttermilk. Arrange three bowls in a row leading to your fryer; in the first put the flour, in the second the beaten eggs, and in the third, combine the bread crumbs and uncooked cream of wheat. Take each chicken piece and dredge it in flour, then dip it in the egg and finally into the crumb mixture (for extra crunchy coating, take the chicken on a second trip through this process). Place in hot oil, letting the chicken flop away from you to keep from being splashed, and fry until the coating is a deep golden brown, turning occasionally. Do not crowd pan. Drain cooked chicken on a rack or on paper towels.