Instructions: *Note: Chicken should be about 2-1/2 to 3 pounds, and cut into serving pieces.
**Walnuts may be crushed in a mortar, blender or food processor.

Wash and dry the chicken parts and season lightly with salt and pepper. In a heavy frying pan, saute the onion in butter until soft, then add the chicken parts after a few minutes. Saute on all sides, then add the bay leaf, thyme, and enough hot water to almost cover. Tighty cover the pan and simmer the chicken until tender (approximately 1 hour). Using a slotted spoon, remove the chicken to a warm platter and keep warm while you prepare the sauce.

Strain the remaining pan liquid into a small saucepan and bring to a boil.

Meanwhile, whisk the milk with the egg yolks, then add, slowly, to the strained pan liquid and cook over very low heat until the sauce boils, stirring constantly. Sprinkle in the nutmeg, then stir in the crushed walnuts. Simmer another minute and pour over the chicken. Serve warm.

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