Rinse and pat dry chicken pieces.
Combine the flour, salt, pepper, garlic powder, nutmeg and paprika in a shallow bowl or glass pie dish. Dredge each piece of chicken in the seasoned flour coating evenly.
Heat butter and olive oil in a large, deep skillet over medium-high heat on the stovetop. Place the chicken pieces in a single layer and cook until brown and crispy on all sides. Transfer the browned chicken to a plate and set aside.
Add onions or shallots to the pan, and cook until slightly softened, about 5 minutes. Add mushrooms, and cook, stirring occasionally, until mushrooms start to brown, about 5 minutes. (*If using jarred mushrooms, do not add at this point.) Add garlic, and cook one more minute. Take the pan off the flame and add wine to deglaze. Return to flame, and bring to a boil. Add chicken stock and stir to combine. Add bay leaf. Bring to a simmer, and simmer 5 minutes.
Place chicken, skin side up, in a single layer in the pan. *The liquid should not cover the chicken entirely. (Add any juices that have accumulated on the plate to the pan.) Bring to a boil, then reduce to a simmer. Cover with lid tilted. Cook until internal temperature of thickest part of chicken registers 165º F, about 50 minutes to 1 hour. Transfer chicken to a clean plate and set aside.
*Alternatively, you can bake this in the oven, uncovered, for about 1 hour to 1 hour and 15 minutes at 350º F. Check internal temperature to make sure it's 165º F or if meat easily pulls away from the bone. (*I like this method the best!)
Then, simmer liquid, uncovered, until reduced quite a bit, about 10 - 15 minutes. Add cream and parsley (if adding). (*Add drained jarred mushrooms if using.) Continue simmering and gently stirring about another 15 minutes until sauce is thickening and reduced even more.
Return chicken pieces to the pan, crispy skin side up, and gently cook over medium-low heat another 3-5 minutes until the chicken is rewarmed and the sauce is nicely thickened.
Serve immediately over rice or mashed potatoes, with homemade biscuits, rolls or bread and butter. Enjoy!