Preheat the oven to 400 degrees.

Seed the peppers and cut them into rings. Season the chicken with salt and pepper.

In a large sauté pan, melt the butter over medium-high heat. Lightly brown the chicken on both sides and transfer to a lightly greased 9x13 inch baking pan.

Add the onions to the sauté pan and cook until soft and brown. Arrange the onions over the chicken.

Add the peppers to the sauté pan and cook until just tender. Arrange the peppers over the chicken and onions.

Add the garlic to the sauté pan and cook for 1-2 minutes.

Pour the diced tomatoes, chicken broth and cream into the sauté pan with the garlic; season with salt, pepper and nutmeg. Simmer the sauce for 5 minutes, stirring occasionally, until slightly thickened.

Pour the sauce over the chicken and vegetables. Cover the pan with foil and bake for 20-25 minutes in the preheated oven.

Remove chicken from oven, and remove the foil. Sprinkle with cheese and return chicken to oven, uncovered, for another 10-15 minutes, until cheese is golden brown and chicken is cooked through. Serve with pasta, if desired.