01 - Preheat the oven to 400°F. Lightly grease a 9 x 13-inch baking dish with cooking spray or a small amount of oil.
02 - Season the chicken breasts evenly with salt and black pepper. Heat olive oil in a large skillet over medium-high heat. Sear the chicken for 3-4 minutes per side until golden brown. The chicken will finish cooking in the oven. Transfer to a plate and set aside.
03 - In the same skillet, add the chopped onion and sliced mushrooms. Sauté for 4-5 minutes until the onions are softened and mushrooms have released their moisture.
04 - Add the minced garlic and cook for 1 minute until fragrant. Stir in the chopped spinach and cook for 1-2 minutes until just wilted.
05 - Reduce heat to low. Add the cream cheese and heavy cream, stirring constantly until smooth and combined. Mix in the Parmesan cheese, half of the mozzarella cheese, Italian herbs, and nutmeg. Season with additional salt and pepper to taste. Remove from heat.
06 - Spread the spinach-mushroom sauce mixture evenly across the bottom of the prepared baking dish. Place the seared chicken breasts on top, nesting them into the sauce. Spoon some of the sauce over each piece of chicken.
07 - Sprinkle the remaining mozzarella cheese evenly over the top of the chicken and sauce.
08 - Bake uncovered for 20-25 minutes until the chicken is cooked through (internal temperature reaches 165°F) and the cheese is bubbly and lightly golden on top.
09 - Remove from oven and let the dish rest for 5 minutes before serving. Garnish with chopped fresh parsley if desired.