01 - Preheat the oven to 400°F. Lightly grease a 9 x 13-inch baking dish.
02 - Season the chicken breasts with salt and black pepper. In a large skillet, heat olive oil over medium-high heat. Sear the chicken on both sides until golden, about 3-4 minutes per side. Transfer to a plate.
03 - In the same skillet, add onion and mushrooms. Sauté for 4-5 minutes until softened and mushrooms have released their moisture.
04 - Add garlic and cook for 1 minute. Stir in the spinach and cook until just wilted, about 1-2 minutes.
05 - Reduce heat to low. Add cream cheese and heavy cream, stirring until smooth. Mix in Parmesan, half of the mozzarella, Italian herbs, and nutmeg. Adjust salt and pepper to taste. Remove from heat.
06 - Spread the spinach-mushroom mixture in the bottom of the prepared baking dish. Nestle the seared chicken breasts on top. Spoon a little sauce over each chicken piece.
07 - Sprinkle remaining mozzarella over the top.
08 - Bake uncovered for 20-25 minutes, or until the chicken is cooked through (internal temperature 165°F) and cheese is bubbly and golden.
09 - Garnish with fresh parsley if desired. Let rest 5 minutes before serving.