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Preheat your oven to 375°F (190°C) and set out a large baking sheet. Tear four generous sheets of aluminum foil and set them aside.
Heat the olive oil and butter in a large skillet over medium heat. Once melted, add the sliced onions and cook slowly, stirring often. Let them soften and caramelize, turning golden and fragrant—this usually takes about 10–15 minutes. Don’t rush this step; it’s where all the flavor begins.
Season the onions with salt, black pepper, garlic powder, and dried thyme. Pour in the beef broth and allow it to simmer for a few minutes until slightly reduced and deeply aromatic. Remove from heat.
Place one chicken breast in the center of each foil sheet. Spoon the caramelized onion mixture generously over the chicken, making sure each piece gets plenty of that rich, savory topping.
Sprinkle the mozzarella and Gruyère cheeses evenly over the onions. The combination of these cheeses creates a perfect balance of meltiness and bold flavor.
Fold the foil up around the chicken, sealing the edges tightly to create secure packets that will hold in all the juices as they bake.
Arrange the packets on the prepared baking sheet and bake for 30–35 minutes, or until the chicken is fully cooked and tender.
Carefully open each packet—watch for the steam—and garnish with freshly chopped parsley for a pop of color and freshness.