Heat 1 tablespoon olive oil over medium heat in a nonstick heavy bottomed skillet.
Season chicken breasts with cayenne pepper, salt and fresh ground pepper on all sides.
Add to hot oil and cook until edges are opaque, about 10 minutes.
Flip to the other side, cover the pan, lower the heat and cook for another 10 minutes, or until done.
In the meantime, prepare tomato sauce.
Heat 2 tablespoons olive oil over medium-high eat in a nonstick heavy bottomed pot or large skillet.
Add onions and cook for 3 minutes.
Stir in garlic and continue to cook for a minute, or until fragrant.
Add tomatoes and chicken broth; season with salt and pepper and bring to a boil.
Lower to a simmer and cover; continue to cook for 15 minutes.
Remove lid and add the sliced mushrooms.
Add the flour and stir until completely combined.
Cover with lid and continue to cook for 5 more minutes.
Remove lid; stir in basil and parsley.
Remove from heat.
Taste for seasonings and adjust accordingly.
Transfer prepared chicken breasts to a serving plate.
Top chicken with prepared sauce.