Heat oil in a large skillet over medium high heat. Saute mushrooms and onions till tender, about 10 minutes. Remove from heat. Dredge chicken in paprika and seasoned salt. Cook garlic in oil until tender. Place chicken in the skillet, and cook about 5 minutes on each side, until no longer pink and juices run clear.
Make sauce with red wine, sugar, chicken broth and cornstarch. Cook for about 5 minutes. Add back chicken, mushrooms and onions; cover and simmer about 15 to 20 minutes; Season to taste with salt and pepper.