If Chi Chi is nearly 2 lbs and around 17 weeks old, then he's probably going to end up at about 3-3.5 lbs as an adult. 3-4% of that would be around 1.5-2oz so I'd probably try to feed him in that range. If he seems to be dropping weight he needs, add a little more.
White foamy throw up is very normal when switching over to raw. It's stomach acids going all frothy because they're in the middle of digesting. You tend to get the frothy throw up when they swallow something too big to comfortably digest and their body says 'actually, buddy, why don't you try that again', so letting them re-eat is totally fine.
You may also get some yellowy bile (or bile and bone bits) throw up. That tends to happen if it's been a little while since the dog has eaten and the stomach is getting ready for food that hasn't yet arrived OR if thicker bone bits aren't digesting fast enough and the body decides to just kick them out the door they came in. If the gastric juices build up too much, they'll hoark some up to lower their level. This is also fine and will happen less as Chi Chi adjusts to raw.
I think cutting the wing up into 3 bits is a good idea for a dog his size, but I agree with Daisydoo that you probably don't need to smash them up.
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