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 thoroughly with salt and black pepper on both sides. Heat olive oil in a large skillet over medium-high heat. Sear the chicken until golden brown on both sides, approximately 3-4 minutes per side. The chicken will finish cooking in the oven, so do not cook through. Transfer to a plate and set aside.
03 - In the same skillet, add the chopped onion and sliced mushrooms. Sauté for 4-5 minutes, stirring occasionally, until the vegetables have softened and the mushrooms have released their moisture.
04 - Add the minced garlic to the skillet and cook for 1 minute until fragrant. Stir in the chopped spinach and cook until just wilted, about 1-2 minutes.
05 - Reduce the heat to low. Add the softened cream cheese and heavy cream, stirring constantly until smooth and fully incorporated. Mix in the Parmesan cheese, half of the mozzarella cheese, dried Italian herbs, and ground nutmeg. Taste and adjust salt and pepper as needed. Remove from heat.
06 - Spread the spinach-mushroom sauce mixture evenly across the bottom of the prepared baking dish. Arrange the seared chicken breasts on top, nestling them into the sauce. Spoon a small amount of the sauce over each piece of chicken.
07 - Sprinkle the remaining mozzarella cheese evenly over the chicken and sauce.
08 - Bake uncovered for 20-25 minutes, or until the chicken is cooked through (reaches an internal temperature of 165°F) and the cheese is melted, bubbly, and lightly golden on top.
09 - Remove from the oven and garnish with chopped fresh parsley if desired. Allow the casserole to rest for 5 minutes before serving to let the sauce set slightly.