Preheat the oven to 180°C/350°F/Gas Mark 4.
Heat half the oil and butter in a large casserole, and brown the chicken pieces well,ensuring the skin becomes crisp and brown. Set aside.
Melt the remaining butter with the oil and add the shallots, mushrooms and pancetta. Cook for 10 minutes until well browned, stirring regularly to ensure even browning. Add the garlic and cook for 2 minutes. Add the flour and cook for a further minute.
In a separate pan bring the red wine to the boil and reduce by half. Pour the cognac into a jug and light carefully with a long match. Pour into the casserole and shake the pan until the flames subside.
Add the reduced red wine and chicken stock, return the chicken pieces to the pan, and add the bay leaf and thyme.
Cover the casserole and cook in the preheated oven for one hour.
Serve garnished with the parsley, with plain boiled potatoes.
Note – it is important that this dish is made with chicken on the bone. Ask your butcher to joint a chicken for you,or use thighs and drumsticks.