Fry chicken in a large, deep, fry pan with a little olive oil (1/2 cup), over medium heat until browned on both sides. Add the remaining ingredients, except the sauce and fresh parsley. Allow the chicken to cook in the peppers, onions, garlic, and mushrooms until softened.
Add the sauce and cook, covered, at low heat until the chicken falls off the bone.
I serve this with creamy polenta or gemeli pasta. Sprinkle with chopped parsley.