Step 1: Preheat your oven to 375°F (190°C). Pat the chicken thighs dry with paper towels. Season generously with salt, black pepper, garlic powder, and paprika on both sides.
Step 2: Heat 1 tablespoon of olive oil in a large, oven-safe skillet (preferably cast iron or heavy-bottomed) over medium-high heat. Once hot, sear the chicken thighs for 3-4 minutes per side, until beautifully golden brown. This creates a delicious crust and locks in flavor. Remove chicken from the skillet and set aside.
Step 3: Add the remaining 1 tablespoon of olive oil to the same skillet. Add the sliced mushrooms and cook for 5-7 minutes, stirring occasionally, until they release their moisture and turn golden brown. Don't overcrowd the pan; cook in batches if necessary.
Step 4: Stir in the minced garlic and cook for another minute until fragrant. Deglaze the pan with chicken broth, scraping up any browned bits from the bottom – this is where all the extra flavor lives! Bring to a simmer.
Step 5: Reduce the heat to low. Add the cream cheese, stirring constantly until it has fully melted and the sauce is smooth. Stir in the dried thyme and parsley. Taste and adjust seasoning with salt and pepper as needed.
Step 6: Return the seared chicken thighs to the skillet, nestling them into the creamy mushroom sauce. Sprinkle the shredded mozzarella and Parmesan cheese over the chicken and mushrooms.
Step 7: Transfer the skillet to the preheated oven and bake for 20-25 minutes, or until the chicken is cooked through (internal temperature reaches 165°F/74°C) and the cheese is bubbly and golden. If desired, broil for the last 2-3 minutes for an extra crispy cheese topping.
Step 8: Remove from the oven, let it rest for 5 minutes, then garnish with fresh chopped parsley before serving. Enjoy your delicious creamy mushroom chicken skillet bake recipe!