Heat butter in pan, add chicken, cook until browned all over; drain on paper towel. Add bacon, onions and garlic to same pan, cook, stirring, until onions are browned and bacon is crisp. Stir in wine, stock, brandy, paste, bay leaf and thyme.

Return chicken to pan, simmer, covered, 30 mins. Add mushrooms, simmer, covered, 30 mins. Add mushrooms, simmer, uncovered, further 10 mins. Remove chicken from pan, stir in blended flour and water, stir over heat until mixture boils and thickens. Return chicken to pan, stir until heated through.