Step 1: Preheat and Prepare : Preheat oven to 375°F (190°C). Lightly grease a 9x13-inch baking dish with butter or olive oil.
Step 2: Sear the Chicken : Season chicken with salt, pepper, and paprika. Heat olive oil in a skillet over medium heat. Sear chicken for 2–3 minutes per side until lightly golden (no need to cook through). Remove chicken and set aside.
Step 3: Make the Creamy Mushroom Sauce : In the same skillet, melt butter and add onions. Sauté for 2 minutes until translucent. Add mushrooms and cook for 5–6 minutes until soft and lightly browned. Stir in garlic and cook for 30 seconds. Sprinkle flour over mushrooms and stir to coat. Gradually add chicken broth, stirring to avoid lumps. Pour in milk and cream, stirring until sauce thickens slightly (about 3–4 minutes). Stir in thyme, salt, pepper, and Parmesan cheese (if using).
Step 4: Assemble the Casserole : Spread uncooked rice evenly in the prepared baking dish. Pour the mushroom sauce over the rice. Gently stir to mix sauce and rice together. Arrange seared chicken pieces on top. Cover tightly with foil.
Step 5: Bake : Bake covered for 40 minutes. Remove foil and bake uncovered for an additional 15–20 minutes, or until rice is tender and most of the liquid is absorbed. Check for doneness — chicken should be fully cooked (internal temperature 165°F / 74°C).
Step 6: Rest and Serve : Let casserole rest for 5–10 minutes before serving. Garnish with chopped parsley and extra Parmesan cheese.