This recipe was handed down from my Grandma. Every time I make it, I remember her. This is fantastic served over sticky white rice. It also freezes beautifully and can easily be sized up or down to suit your needs.
Cut chicken into bite sized pieces and add to flour mixture.
After all chicken is in the bag, close bag and shake to coat chicken pieces.
Melt butter in a large skillet over medium low heat.
Slowly brown both sides of chicken in the melted butter. Note: If your skillet isn't large enough, you can do this in batches, it may require additional butter.
Remove chicken and set aside in a baking dish.
Cook onion in same pan until soft (if using onion powder, skip this step).
Add a small amount (approximately 2-3 tablespoons) of the flour/pepper mixture to the water.
Pour water and flour mixture slowly into the pan.
Add chicken broth and thyme (if using onion powder, add it now) and bring to a simmer. Stir often to make a thickish gravy.
Return browned chicken pieces to the pan.
Reduce heat to low and cover. Simmer for 30 minutes, stirring periodically.
Transfer chicken and gravy into baking dish. I use a 2.8 liter Corning Ware dish, but a 9x13 dish will work as well.
Cover and bake at 375 for 30 minutes.
Note: This dish freezes beautifully. After cooking for the first 30 minutes, cool, place in a freezer bag. When you are ready to cook, defrost and cook, covered at 375 for 45-60 minutes or until hot and bubbly.