Melt 1 tablespoon butter and cook shallots for several minutes.
Add chicken and chicken broth and simmer for about 10 minutes.
Remove chicken and place in a large baking dish, reserving the
chicken stock with shallots.
In a separate pan, melt the remaining butter and add flour and
stir until a paste forms. Add reserved chicken stock and shallots
and bring to a boil; mixture should start to thicken. Reduce
heat and add cream, sherry, parsley and salt and pepper. Cook
over low heat for several minutes.
Pour sauce over chicken and
sprinkle with ham and cheese.
Bake at 350 degrees F for 20 minutes
or until cheese melts.