Step 1: Melt butter in a large skillet over medium-high heat.
Step 2: Add chicken pieces and brown on all sides.
Step 3: Remove chicken and drain on paper towels.
Step 4: Add onions, garlic and carrots to skillet, and let brown slightly.
Step 5: Push vegetables to one side and sprinkle in flour, stirring constantly.
Step 6: Gradually stir in sherry.
Step 7: Add bay leaf, parsley, thyme and mushrooms.
Step 8: Season with salt and pepper.
Step 9: Reduce heat to low and return chicken to pan.
Step 10: Cover and simmer about 45 minutes, or until chicken is tender, adding more sherry if needed.
Step 11: Remove bay leaf before serving.
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