Cook the bacon and set aside on a plate with paper towel.
In a medium to large skillet (12-14 inch), heat 2 tablespoons olive oil over medium-high heat.
Season the chicken breasts with salt and pepper. Place the chicken in the skillet and cook on both sides, 5 minutes on each side. If you need to cook in batches, add an additional tablespoon of olive oil in between batches.
Remove the chicken to a plate and tent with aluminum foil to keep warm.
Add 1 tablespoon of olive oil and 2 tablespoons of butter. Add the mushrooms and cook for about 3-5 minutes. Add in the shallots and season with salt and pepper. Cook until soft, about 3 minutes.
Pour in the chicken stock and white wine and bring it to a boil. Allow it to boil for about 5 minutes.
Lower the temperature to medium. Whisk in the parmesan cheese, heavy cream, and parsley and mix well.
Mix the flour and water and slowly pour it in. Mix well and turn the heat to high. Let the liquid come to a slight boil to thicken the sauce.
After about 1 minute, nestle the chicken pieces under the sauce and rewarm for about 1 minute. finish off with the last tablespoon of butter.
Serve with the crumbled bacon.
Bacon - I like to use applewood smoked. Really, just about any bacon would work well here.
Baby Bella Mushrooms - also called cremini mushrooms, I like the color and texture. You can substitute white button mushrooms.
White Wine - I always use chardonnay. But you can use another dry wine like a blanc or pinot grigio. Those are a little too dry for my taste.
Heavy Cream - you can substitute half-and-half. The heavy cream makes the sauce thicker.