In a large skillet heat on medium heat 2-3 TBS olive oil and add sliced red onions and saute until translucent. Once done place in a bowl and set aside for later use. Now Take 2 cups of flour and place in large bowl. Large enough to fit chicken pieces. Along with the flour add 1 tsp salt, 1 tsp pepper, 2 TBS parsley, 2 tsp garlic, and 2 tsp thyme.
Mix the spices with the flour and coat chicken pieces in the flour and spice mixture. Next, in same large skillet add 3-4 TBS olive oil and bring to medium to high heat. Add Chicken pieces and brown each side approximately 5 minutes on each side.
In large stock pot place browned chicken pieces. Larger pieces at the bottom of the pot. Next add previously sauted onions along with 2 tsp Thyme, 2 bay leaves, 2 tsp garlic, 2 TBS parsley, 1 tsp salt, 1 tsp pepper. Next add 2-3 cups of dry sherry, and 2 cups chicken stock enough to cover chicken and onions. Bring to a boil on medium heat for about 20 minutes. Next, turn down heat to a low simmer and cover and let cook for 1 hour. When the last cooking time is finished, carefully pour off as much of the liquid from the pot as possible without pouring off onions and chicken. It is best to do this over a colander. Keep chicken and onions in that same pot and then add cut mushrooms to the pot. Cover and let chicken come to a rest for about 20 minutes which then in that time the mushrooms have cooked from the heat. It is also a good time to make Noodles or Potatoes to serve with chicken.
Serve Chicken and mushrooms with cooked potatoes or noodles on the side.