In a large, heavy-bottomed skillet, heat the oil until smoking. Add the chicken pieces and brown in the oil, working in batches if necessary to avoid overcrowding the pan. Remove the chicken from the pan and set aside.
Add the onion, bell pepper, hot peppers and mushrooms and saute for 10 minutes, until all are golden brown. Add the wine, return the chicken to the pan, allow the wine to boil and then reduce heat to a simmer. Cook the chicken for 45 minutes, adding wine if necessary to keep the meat from getting dry. Stir in the basil and parsley and serve with 1 hot chili atop each portion.