Place the chicken thighs on a plate. In a medium mixing bowl, mix together flour, garlic powder, ½ tsp salt and ¼ tsp black pepper.

Dredge the chicken thighs in the seasoned flour until thoroughly coated. Reserve.

In a large saute pan combine the diced tomatoes, tomato sauce, tomato paste, red wine, sugar, oregano, and basil. Stir. Turn the heat to medium low and let the sauce slowly warm.

Heat 1 tbsp of olive oil in a skillet over medium. Place the breaded chicken thighs into the skillet and fry them for a few minutes on each side until they turn golden brown. Don't cook them all the way through, just brown them.

Place the browned chicken thighs into the sauce. Bring the sauce to a boil, then reduce heat and let the thighs simmer on medium low in the sauce.

Meanwhile, pour another tablespoon of olive oil into the skillet. Pour the chopped onion and bell pepper into the skillet. Saute them for 8-10 minutes till softened.

Stir the sauteed onion and pepper into the tomato sauce.

In the skillet, sear the sliced mushrooms on medium high for 5-6 minutes until they start to brown.

Stir the seared mushrooms into the sauce.Let the chicken and vegetables simmer together for another 20-30 minutes, stirring occasionally, until the chicken cooks through and the sauce thickens. If the sauce seems to be drying out or gets overly thick, stir in some hot water to thin it out a bit. At the end of cooking, season with salt and pepper to taste.

Serve hot chicken and sauce over cooked wide egg noodles or rice. Garnish with a little chopped fresh basil, if desired.