1 Preheat oven to 250º F.
2 In a large Dutch oven set over medium heat, cook bacon until crisp, about 5 minutes. Remove from pan with a slotted spoon and drain on a paper towel. Set aside.
3 Rinse chicken pieces under cold running water and pat completely dry with paper towels. Season the chicken lightly salt with pepper. Working in batches, brown the chicken pieces on both sides in the bacon drippings, about 5 to 6 minutes. Remove chicken and set aside.
4 Add carrots, reserving 1 or 2 for a bouquet garni, shallots, and 1 teaspoon salt and 1 teaspoon pepper, cook for 10 to 12 minutes, stirring frequently, until the shallots and carrots are lightly browned. Add the garlic and cook for an additional 1 to 2 minutes. Add the brandy, bacon, and chicken to the pot. Add the wine, chicken stock and sugar.
5 Prepare banquet garni. Bundle reserved carrots, parsley, thyme, and bay leaves together with kitchen twine and add to the pot. Cover with a tight fitting lid and place in the oven for 35 to 40 minutes, or until the chicken is no longer pink.
6 Remove from the oven and place on top of the stove. Melt half of the butter and mix with flour and nutmeg; stir into the stew. Add the frozen onions.
7 Melt the remaining butter in a saute pan and cook the mushrooms over medium heat for 7 to 10 minutes, or until browned. Add to the stew. Bring stew to a gentle simmer and cook for 10 minutes on top of the stove. Season to taste with salt and pepper. Remove bouquet garni and serve hot.