Preheat the oven to 375°F.
In a large bowl, mix ground chicken, egg, almond flour, Parmesan (or nutritional yeast), garlic, oregano, thyme, salt, pepper, and chili flakes until just combined. Do not overmix.
Roll into 14–16 meatballs, about 1½ tablespoons each.
Heat oil in a large oven-safe skillet over medium-high heat.
Add meatballs in a single layer and sear for 2–3 minutes, flip, and sear another 2–3 minutes. Transfer meatballs to a plate.
Lower heat to low. Add garlic and cook for 1 minute.
Add mushrooms (if using) and cook for 3–4 minutes.
Add oregano, thyme, salt, pepper, and chili flakes directly to the skillet and stir to bloom the spices.
Pour in bone broth and coconut cream and stir, scraping up any browned bits.
In a small bowl, whisk arrowroot starch with water until smooth. Pour into the skillet, raise heat to medium, and simmer for 2–3 minutes until the sauce begins to thicken.
Stir in sun-dried tomatoes, then Parmesan (or nutritional yeast) until melted and creamy.
Return meatballs to the skillet, spoon sauce over the top, and transfer to the oven. Bake for 15-18 minutes, until meatballs are cooked through and the sauce is thick and glossy.
Remove from the oven, spoon extra sauce over the meatballs, finish with fresh basil, and serve with your favorite sides. Enjoy!