Melt the butter in a large skillet, add mushrooms and cook until softened. Stir in flour, Marsala and cream and cook until thickened.
Stir in 2 cups of water, some parsley, salt and pepper.
Sprinkle uncooked rice in a baking dish, top with chopped chicken and mushroom sauce, cover with foil and bake until bubbly, about 35 minutes.
Sprinkle parmesan cheese on top and bake for 5 additional minutes.