In a large bowl, mix together the ground chicken, egg, parmesan, breadcrumbs, garlic, parsley, salt, pepper, fennel seeds, Italian seasoning, and red pepper flakes just until evenly combined. Form and roll into twelve meatballs, placing them on a baking sheet. Place the flour in a shallow dish and set aside.
Set a large skillet over moderate heat with 1 tablespoon butter and 1 tablespoon oil. Roll the meatballs in the flour and shake off any excess, placing them into the hot skillet in a single layer. Cook until browned on all sides and until just barely cooked through (they'll finish off in the sauce later), about 8 to 10 minutes. Transfer the meatballs onto a plate and set aside.
Add the remaining butter and oil to the skillet. Once melted, add in the shallot, garlic and mushrooms. Cook, stirring often, until softened and browned, about 10 to 12 minutes. Deglaze the pan with the marsala wine and cook until almost reduced completely. Lower the heat and stir in the stock and heavy cream. Season with salt, pepper, and the thyme. Add in the meatballs and cook until the sauce has thickened and reduced by half. Serve over couscous or rice and garnish with fresh parsley. Enjoy!