Cut bacon into 1/4" pieces and sauté in 2 Tbl. butter in heavy Dutch oven until browned, remove to side dish.
Dry chicken thoroughly and add pieces into the hot oil and brown on all sides, then season with salt & pepper.
Return bacon to the pan and cover, cooking on low for 10 minutes, turning chicken once.
After browning the chicken, uncover pan and add cognac. Flambé by igniting with a match, swirl pan to burn off alcohol and extinguish flame.
Add red wine and enough chicken broth to almost cover chicken pieces.
Stir in tomato paste, garlic, bay leaf, and thyme.
Bring liquid to a simmer, then cover, and simmer slowly for about 30 minutes until chicken is tender and instant-read meat thermometer reads 165 degrees.
While the chicken is cooking prepare the Brown-Braised Onions and the Sautéed Mushrooms (see previous post).
Once chicken is done cooking, remove to a side dish, leaving the cooking liquid in the pot.
Bring liquid to boil and cook to reduce to about 2 cups, then remove bay leaf.
Make paste from 3 Tbl. flour and 2 Tbl. softened butter and then add into the 2 cups of hot cooking liquid.
Whisk and simmer for 1-2 minutes until sauce is nicely thickened to coat the chicken.