Season chicken with salt and pepper. Dredge in flour. Fry bacon in a frying pan until crisp. Brown chicken in bacon fat on all sides.
Pour the cognac over chicken.
Ignite then add wine, stock, garlic, thyme and bay leaf.
Cover chicken and cook in a 375 degree oven for about 30 minutes.
Meanwhile, peel and boil the pearl onions until tender. Saute onions and mushrooms in half of butter. Add to chicken together with bacon. Mix remaining butter and cornstarch.
Arrange chicken pieces in a deep serving dish.
Thicken the sauce with butter mixture whisking until sauce is thick enough to coat the back of a spoon. Pour sauce over chicken.
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