In a large pot, boil the chicken pieces until they are fully cooked.

Reserve the water for boiling rice later.

Once cooked, remove the chicken from the pot and cut it into small squares.

In a skillet, melt the butter over medium heat.

Brown the chicken squares in the melted butter and sherry.

Add the stewed tomatoes (with their juices), drained mushrooms, Italian dressing mix, chopped green pepper, Italian seasoning, garlic powder, and bay leaf to the skillet.

Bring the mixture to a boil, then reduce the heat and let it simmer for about 1 hour, stirring occasionally.

While the chicken cacciatore is simmering, cook rice in the reserved chicken water according to package instructions.

Once the chicken is tender and the sauce has thickened, remove the bay leaf.

Serve the chicken cacciatore over the cooked rice.