Preheat oven to 375° Fahrenheit. In large oven-safe skillet, cook diced bacon over medium heat until bacon is crisp and fat is rendered. Transfer cooked bacon to plate. Pour out bacon grease, leaving 1-2 tablespoons grease in skillet. Raise heat to medium-high.
Liberally season both sides of each chicken thigh with salt, pepper, and Italian seasoning. Place seasoned chicken thighs in skillet, skin-side down. Place them carefully in such a way that they will cook evenly without needing to be moved. Let chicken thighs cook approximately 7 minutes or until skin is evenly browned and releases easily from skillet. Note: if skin sticks to skillet, continue cooking until skin releases easily.
Flip chicken thighs over so skin-side faces up. Transfer skillet to preheated oven and cook 13 minutes, or until internal temperature reaches 160º Fahrenheit.
Remove skillet from oven and carefully transfer chicken thighs to another plate. Place skillet on the stovetop and turn heat to medium-high. Take special care to always, always use a pot holder from this step forward; the handle will stay very hot.
Pour out all but 2 tablespoons of fat from skillet. Add sliced mushrooms and cook approximately 4 minutes, stirring only once, or until mushrooms are golden brown and slightly softened.
Add garlic cloves and sauté, stirring constantly, until garlic is fragrant, approximately 30 seconds to 1 minute.
Pour coconut milk into skillet and add salt and fresh thyme. Increase heat to high and bring mixture to gentle boil, then immediately reduce heat to low. Simmer mixture approximately 2 to 4 minutes, until flavors have blended and sauce has reduced slightly.
Add bacon to sauce and stir well. Taste and add more salt and pepper as desired. Return chicken thighs to skillet and coat with sauce. Serve warm with mashed potatoes or cauliflower rice and some leafy greens.