Brown chicken lightly in half the butter in skillet, and season with salt and pepper. Lay in single layer in greased shallow 9x13-inch baking dish. Splash with 1/4 cup chicken broth. Cover tightly and bake in preheated 350° oven for 20 minutes.
While chicken bakes, sauté onion gently in remaining butter until soft. Add chiles to pan with garlic and flour. Stir and cook a minute or so. Stir in remaining cup broth, and simmer until smooth and slightly thickened. Pour into blender or food processor and whirl until puréed. Put back into skillet and stir in cream. Heat just to simmering and pour over chicken. Sprinkle with cheese. Bake in 350° oven an additional 30 minutes, or until baked and cheese is glazed.
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