Lightly grease a 9x13 baking dish with cooking spray and set it aside.
In a large skillet over medium-high heat, melt 1/2 tablespoon of butter and add 1/2 tablespoon of olive oil.
Add sliced mushrooms and onions to the skillet. Season with salt and pepper, and cook for 5 minutes, stirring occasionally.
Stir in the garlic and cook for about 20 seconds until fragrant.
Transfer half of the mushroom mixture to the prepared baking dish and set the remainder aside.
Return the skillet to the heat and add the remaining butter and olive oil.
Season the chicken breasts with salt, pepper, garlic powder, paprika, and Italian seasoning.
Add the chicken breasts to the hot oil. If the skillet isn’t large enough, you may need to do this in batches. Cook the chicken for 2 minutes per side or until lightly browned.
Remove the chicken breasts from the skillet and arrange them over the mushrooms in the baking dish.
Return the skillet to the stove, add chicken broth, and scrape up the browned bits. Bring the mixture to a boil and cook for 4 to 5 minutes or until the liquid is reduced.
Meanwhile, top the chicken breasts with the remaining mushroom mixture, add cheese over the chicken breasts, and finally, pour in the prepared chicken broth.
Bake the dish uncovered for 15 minutes or until the chicken is cooked through.