Sprinkle chicken with salt, pepper and Italian seasoning. Coat the pieces with flavored bread crumbs. In a large skillet over medium heat brown the chicken in a single layer in baking dish.
Saute onion in butter remaining in skillet and sprinkle with garlic powder, until tender. Add broth and wine; bring to a boil. Pour around chicken and bake uncovered in preheated 350 degree oven for approximately 40 minutes.
Meanwhile, saute mushrooms in remaining 2 tablespoons of butter. Add to chicken last 5 minutes. Serves 4.