Step 1: Prepare the Meatball Mixture

In a large mixing bowl, combine the ground chicken, Parmesan cheese, panko breadcrumbs, egg, minced garlic, salt, black pepper, onion powder, smoked paprika, and chopped parsley. Use clean hands or a spoon to mix everything together until well combined. Be careful not to overmix, as this can make the meatballs dense.

Step 2: Shape the Meatballs

Using a small cookie scoop or your hands, form the mixture into 1-inch meatballs. You should get about 16-18 meatballs depending on the size. Place them on a plate and set aside.

Step 3: Sear the Meatballs

Heat 1 tablespoon of olive oil in a large skillet over medium heat. Once hot, add the meatballs in a single layer, making sure not to overcrowd the pan. Cook for about 3-4 minutes per side, until they are golden brown and crispy on the outside. Transfer them to a plate and set aside. They don’t need to be fully cooked yet, as they will finish cooking in the sauce.

Step 4: Sauté the Mushrooms

In the same skillet, melt 2 tablespoons of butter and add 1 tablespoon of olive oil. Toss in the sliced mushrooms and cook for about 5-7 minutes, stirring occasionally, until they release their juices and begin to caramelize.

Step 5: Add the Aromatics and Broth

Once the mushrooms are golden brown, add the minced garlic and thyme, stirring for about 30 seconds until fragrant. Pour in the chicken broth, scraping up any browned bits from the bottom of the pan. Let it simmer for 2 minutes to reduce slightly.

Step 6: Make the Creamy Sauce

Reduce the heat to low and stir in the heavy cream, Parmesan cheese, salt, and black pepper. Allow the sauce to simmer for 2-3 minutes, stirring occasionally, until it thickens slightly.

Step 7: Finish Cooking the Meatballs

Return the seared meatballs to the skillet, nestling them into the sauce. Cover and let them simmer for 5-7 minutes, or until the meatballs are fully cooked through (internal temperature should reach 165°F (75°C)).

Step 8: Serve and Garnish

Sprinkle the finished dish with chopped parsley and extra Parmesan cheese. Serve immediately over pasta, mashed potatoes, rice, or with a side of crusty bread to soak up the delicious sauce.