Heat the broth in a large wide-mouthed (critical for all the dumplings) pot or dutch oven over high heat until it comes to a simmer. Add the chicken to the simmering broth and let it return to a simmer.
Cover the pot, reduce the heat to medium low, and continue simmering another 8-10 minutes until the chicken is just cooked.
Transfer the chicken to a plate, tent it with aluminum foil, and let it rest while you prepare the rest of the stew. Strain the chicken broth into a large bowl and wipe out the pot.
Melt the butter in the empty pot over medium heat. Add the onion and salt, saute for 5-7 minutes, until soft. Add the mushrooms, continue sauteing 10-15 minutes until browned. Stir the minced garlic into the onions and mushrooms, cook another 30 seconds until garlic becomes fragrant.
Add in the flour and cook 1 minute, stirring frequently, until toasted but not burnt. Quickly add the sherry, scraping up any browned pieces in the pan. Add the reserved broth, milk, cream, thyme, bay leaves, and pepper. Turn the heat up to high and bring the mixture to a boil. Cover, reduce the heat to low, and gently simmer about 20 minutes until the stew thickens.