Step 1: Pat chicken thighs thoroughly dry with paper towels. Season generously with garlic powder, onion powder, salt, and pepper on both sides.
Step 2: Heat olive oil in a large skillet over medium-high heat. Once hot, place seasoned chicken thighs into the skillet. Sear for 5-7 minutes per side, until deeply golden brown and cooked through (internal temperature 165°F/74°C). Remove chicken and set aside, tented with foil.
Step 3: Reduce heat to medium. Add sliced mushrooms to the same skillet. Sauté for 5-7 minutes, stirring occasionally, until mushrooms are browned and have released their moisture.
Step 4: Add minced garlic to the skillet and cook for another minute until fragrant, being careful not to burn it.
Step 5: Pour in the chicken broth, scraping up any browned bits from the bottom of the pan with a wooden spoon. Bring to a simmer and let it reduce slightly for 2-3 minutes.
Step 6: Stir in the heavy cream and cream cheese (if using). Bring the sauce to a gentle simmer, then reduce heat to low. Whisk continuously until cream cheese is fully melted and sauce is smooth and slightly thickened. Season with Italian seasoning, salt, and pepper to taste.
Step 7: Return the cooked chicken thighs to the skillet, nestling them into the creamy mushroom sauce. Spoon some sauce over the chicken. Simmer for another 5 minutes, allowing chicken to warm through and absorb flavors.
Step 8: Garnish with fresh chopped parsley or chives before serving. Serve hot with your favorite low-carb sides.