Qorma-E-Samaruq (Chicken and Mushroom Stew)

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1 1/2 cups chopped onion
4 tablespoons vegetable oil
1 3 to 3 1/2 pound chicken, cut into serving pieces
1 28-oz can chopped tomatoes
1/2 teaspoon cayenne pepper, or 1 hot green chili
1/2 teaspoon turmeric
1/2 teaspoon ground fennel seeds
1/2 teaspoon ground ginger
salt to taste
1 16-oz package mushrooms, trimmed, wiped clean and sliced

Heat the oil in a large, deep skillet or casserole, over moderate heat. Saute the onions in the oil until golden, 3-5 minutes. Add chicken and continue to saute, turning frequently, until chicken turns color, 10-15 minutes. Add tomatoes, spices and salt to taste. Stir and continue to cook over medium heat until chicken is almost done. Add mushrooms and cook an additional 15-20 minutes, unti chicken and mushrooms are done. Serve with basmati rice and/or naan.