Pat the chicken strips dry with paper towels, then season them evenly on all sides with old bay seasoning, onion powder, smoked paprika, salt, and black pepper. Let the seasoned chicken sit for 5 minutes while you prepare the mushrooms—this allows the flavors to begin adhering to the meat. I like to season chicken generously and let it rest briefly; it makes a real difference in how the spices develop during cooking.

Heat 1.5 tbsp avocado oil in a large skillet over medium-high heat until shimmering. Working in batches if needed to avoid crowding, sear the chicken strips for 5-6 minutes per side until golden brown and cooked through. Transfer the cooked chicken to a plate and set aside. Don't worry about cooking it completely through—it will finish cooking when returned to the sauce.

Add 1 tbsp avocado oil to the same skillet over medium-high heat. Add the sliced mushrooms and sauté for 3-4 minutes until they begin to soften and release their moisture. Add the minced garlic and cook for 1-2 minutes until fragrant. Pour in the chicken broth and coconut milk, then whisk in the Dijon mustard, honey, and lemon pepper. Stir well to combine all the sauce components evenly.

Reduce the heat to medium-low and simmer the sauce for 1-2 minutes to let the flavors meld. Stir in the fresh thyme leaves and grated parmesan, stirring constantly for 1-2 minutes until the cheese melts and creates a creamy consistency. I find that keeping the heat lower when adding the cheese prevents it from becoming grainy. Return the seared chicken to the pan and gently stir to coat it evenly with the sauce.

Let the chicken simmer gently in the sauce for 2-3 minutes to warm through and allow the flavors to marry. Transfer to serving plates or a platter, spooning the mushrooms and sauce over the chicken. Garnish with fresh chopped parsley and a sprinkle of additional parmesan if desired. Serve immediately while the sauce is warm and creamy.