01 - Preheat the oven to 400°F. Lightly grease a 9 x 13-inch baking dish with cooking spray or a small amount of olive oil.
02 - Season both sides of the chicken breasts 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. 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 softened and mushrooms have released their moisture.
04 - Add 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 heat to low. Add cream cheese and heavy cream, stirring constantly until smooth and combined. Mix in Parmesan cheese, half of the mozzarella cheese, Italian herbs, and nutmeg. Taste and adjust salt and pepper if 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 sauce over each chicken piece.
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 melted and golden brown.
09 - Remove from oven and let the casserole rest for 5 minutes before serving. Garnish with chopped fresh parsley if desired.