Melt 1 tablespoon butter in skillet; add mushrooms and cook until soft. Transfer to a bowl and cover.
STEP 2
Whisk flour, garlic powder, salt, and black pepper in a bowl. Dredge chicken in flour mixture and shake off excess.
STEP 3
Cook diced bacon in the same skillet over low heat until cooked but not crisp. Melt 2 tablespoons butter; add chicken and cook for 2 minutes per side, adding remaining butter if necessary.
STEP 4
Transfer chicken to a plate; cover to keep warm. Slowly whisk water into cornstarch; whisk in wine. Add to skillet with reserved mushrooms; heat until boiling and thickens. Top chicken with sauce; serve.