COQ AU VIN ROUGE

1/4 lb. thick bacon
1 pkg boneless, skinless chicken breasts (about 1 lb)
1 pkg boneless, skinless chicken thighs (about 1 lb)
2 tbls olive oil
2 tbls butter
1/2 tsp salt
1/8 tsp freshly ground pepper
1/4 cup cognac
3 cups red wine (Burgundy, Merlot, etc.)
1 can (10 3/4 oz) undiluted beef consomme
2 tbls tomato paste
2 cloves garlic, minced or pressed
1/4 tsp dried thyme leaves
1/4 tsp dried rosemary
1 bay leaf
1 pkg (10 oz) frozen pearl onions (thawed)
1/2 lb. small fresh mushrooms
2 tbls cornstarch

Slice bacon strips crosswise into 1/4-wide pieces. Place in 4- or 5-qt dutch oven on top of stove and sauté until very lightly browned and bottom of pan is coated with fat. Cut chicken into 1" by 2" pieces (breasts can be cut into 4-6 pieces each, thighs into about 4 pieces each -- I use kitchen shears for this). Add chicken and 1 Tablespoon of the olive oil to casserole. Brown chicken well. Sprinkle with salt and pepper. Pour cognac over chicken and cook for about 2 minutes. (You can flame cognac before adding to pot, if you like -- cook until flames die.) In a small bowl, mix wine, consommé, and tomato paste. Add to pot. Stir in garlic, thyme, rosemary, and bay leaf. Cover and simmer for 30 minutes or until chicken is fork tender. Meanwhile, brown onions in 1 Tablespoon of the oil in a large skillet. Push onions to one side of pan . Add 1 Tablespoon of the butter to pan. Add mushrooms and brown well. Remove chicken from casserole. Strain juices into bowl, discarding the herbs. Place juices back into casserole and boil until reduced by half. Mix cornstarch with remaining 1 Tablespoon butter (softened). Whisk cornstarch mixture into boiling juices and cook until thickened. Return chicken to pot with thickened juices. Stir in onions and mushrooms. Simmer a few minutes to blend flavors. Pour everything into a covered 2-quart casserole dish. Serve now, *OR* refrigerate until an hour before serving time, then reheat at 300 degrees (covered) for 1 hour.