Cook pearl onions and carrots in boiling water to cover 5 minutes. Add green pepper; continue to cook 3 minutes. Remove from heat, and drain. Add peas; set aside. Saute' 1/2 cup chopped onion in oil in a large skillet until tender and lightly browned.
Remove half of onions to a paper towel; set aside for use in biscuits. Add 1/4 cup flour to onion and oil in skillet, stirring until smooth. Cook 1 minute, stirring constantly. Gradually add broth, and cook stirring constantly, until mixture is thickened and bubbly. Stir in pepper. Add vegetables and chicken; simmer 5 minutes, stirring often.
Pour into a lightly greased 9 inch square baking dish; set aside. Combine 1 1/2 cup flour, baking powder, and salt; cut in shortening with a pastry blender until mixture resembles coarse meal. Add milk and reserved onion, stirring just until dry ingredients are moistened.
Turn dough out onto a lightly floured surface, and knead 4-5 times. Roll dough to 1/4 inch thickness; cut with a 2 inch round cutter. Arrange biscuits on top of chicken mixture; bake at 450 degrees F for 10-12 minutes or until biscuits are lightly browned.
By Robin from Washington, IA
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