Melt butter in a large skillet over medium heat. Add onion, bell peppers (green & red), and mushrooms. Cook 5–7 minutes until softened.
Sprinkle the flour over the vegetables and stir for approximately 1 minute.
Slowly pour in chicken broth and milk while stirring. Cook for 3–5 minutes, until thick and creamy.
Add chicken, peas, pimentos (if chosen over red peppers), paprika, and sherry (optional). Heat through for 2–3 minutes.
Add Salt and pepper to taste.
Adjust thickness with more broth or milk if needed.
Serve over rice, pasta, biscuits, toast, or puff pastry shells.