Pound chicken cutlets very thin to tenderize. Bread and fry them quickly (they do not have to be fully cooked just well browned). Set aside.
In a separate pan saute onions until they're nicely colored, then slice and add the mushrooms and saute' a little longer. Finally add the peppers for one minute.
In a small saucepan combine jelly, sugar, and ketchup over low heat until nicely combined. Pour sauce over chicken and vegetables in a baking pan. You can add 1/4 cup of water if you would like. Cover chicken and bake at 350 for about 45 minutes taking care not to over bake as the chicken will dry out if you do this for too long (there should be sufficient sauce; go ahead and peek while it's baking to check). Serve with rice. Enjoy!