01 - Preheat oven to 400°F. Lightly grease a 9×13-inch baking dish with olive oil or nonstick cooking spray.
02 - Pat chicken breasts dry with paper towels. Season generously on both sides with salt, black pepper, paprika, and dried thyme, pressing the spices into the meat to adhere.
03 - In a large skillet over medium heat, melt the butter with the olive oil. Add sliced mushrooms and sauté for 4-5 minutes until softened and lightly browned. Stir in minced garlic and cook for 1 additional minute until fragrant. Remove from heat.
04 - Arrange seasoned chicken breasts in a single layer in the prepared baking dish. Spread the sautéed mushroom mixture evenly over the chicken pieces. Carefully pour chicken broth around the base of the chicken, not directly over the top.
05 - Sprinkle shredded mozzarella cheese evenly across the chicken and mushrooms, followed by the grated Parmesan cheese.
06 - Bake uncovered for 25-30 minutes until chicken reaches an internal temperature of 165°F and the cheese is bubbly and lightly golden brown on top.
07 - Remove from oven and let the chicken rest for 5 minutes before serving. This allows juices to redistribute throughout the meat. Garnish with fresh herbs such as parsley or thyme if desired.