Step 1

Melt butter in a large skillet over medium-high heat. Add mushrooms and salt. Saute until mushrooms release their moisture. Continue cooking until moisture evaporates and mushrooms begin to brown, 8 to 10 minutes. Add shallots; cook and stir just until shallots soften, 3 or 4 minutes.

Step 2

Reduce heat to medium. Stir in flour to coat the mushrooms; cook until flour begins to turn golden, about 5 minutes, to form roux. Add peppers; cook and stir about 1 minute. Pour in sherry wine; allow to sizzle about 30 seconds. Stir in stock. Raise heat to medium-high and bring to a simmer. When it starts to bubble, reduce heat to medium-low and cook until slightly thickened, 10 to 15 minutes stirring occasionally. Add nutmeg and cayenne pepper.

Step 3

Stir in thyme, parsley, cream, and chicken. Reduce heat to low and cook until chicken is heated through, about 5 minutes. Check seasonings and adjust as needed. Top each serving with some chopped fresh chives.