In a deep sided skillet fry the bacon slices over medium heat until crispy. Remove and set aside.
Season chicken thighs on both sides lightly with salt and pepper and fry in the bacon grease for about 5 minutes per side until the outside is browned and the juices run clear.
Remove the chicken and set aside. Add the potatoes to the pan and fry until fork tender.
Remove the potatoes with a slotted spoon and mash. Add butter or sour cream and continue mashing. Once the potatoes are mashed, add milk and mash until smooth.
Crumble or cut the bacon into small pieces and mix into the mashed potatoes.
Add flour to the remaining oil in the pan and whisk until a roux forms. Add chicken broth a little at a time whisking as you do until a sauce forms that is a little thinner than gravy. Allow the sauce to simmer for about a minute until it thickens and remove from heat.
Season the potatoes with the italian seasoning and salt and pepper to taste. Season the gravy with salt and pepper to taste.