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1
Drop pearl onions into boiling water in a Dutch oven, and cook 3 minutes.
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2
Drain; rinse with cold water, and peel.
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3
Set aside.
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4
Melt 1 tablespoon butter in Dutch oven over medium heat.
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5
Add slivered onion, carrot, and celery; saute 5 minutes.
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6
Place the onion mixture in a bowl; set aside.
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7
Add chicken pieces to Dutch oven; cook 4 minutes, turning chicken pieces once.
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8
Cover, reduce heat to medium-low; cook 10 minutes.
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9
Combine flour, salt, and pepper; sprinkle over both sides of chicken.
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10
Cover and cook 5 minutes.
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11
Return onion mixture to pan; add wine and next 4 ingredients, stirring gently.
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12
Bring to a boil; cover, reduce heat, and simmer 25 minutes or until chicken is done.
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13
Remove chicken from pan, and arrange on a serving platter; set aside, and keep warm.
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14
Discard bay leaf.
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15
Bring sauce to a boil; cook 7 minutes or until the sauce is reduced to about 3 cups, stirring occasionally.
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16
Reduce heat to medium; gradually stir in milk, and cook an additional 5 minutes, stirring occasionally.
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17
Remove from heat; cover and set aside.
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18
Melt the remaining 2 teaspoons butter in a skillet over medium heat, and add pearl onions.
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19
Saute 4 minutes or until tender; remove from skillet.
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20
Add mushrooms, and saute 3 minutes.
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21
Arrange the pearl onions and the mushrooms around chicken on serving platter, and spoon the sauce over chicken and vegetables.
