Preheat your oven to 350°F (175°C). Lightly grease a 9x13-inch baking dish. Cook egg noodles in a large pot of salted boiling water according to package directions for al dente. Drain and set aside.
While the noodles cook, melt butter in a large skillet over medium-high heat. Add the chicken pieces and season with thyme, garlic powder, salt, and pepper. Cook, stirring occasionally, until browned on all sides, about 5-7 minutes.
Reduce the heat to medium, add the sliced onion to the skillet, and cook until it begins to soften, about 4-5 minutes. Pour in the sherry, scraping up any browned bits from the bottom of the pan. Simmer until the liquid has mostly reduced.
In a large bowl, combine the condensed soup, sour cream, dry onion soup mix, and 1 cup of the shredded cheese. Stir until smooth.
Add the drained noodles and the chicken and onion mixture to the bowl with the sauce. Stir everything together until well combined.
Pour the mixture into your prepared baking dish and spread it into an even layer. Sprinkle the remaining 1 cup of cheese over the top.
Bake uncovered for 20 minutes, or until the sauce is bubbly and the cheese is melted.
Remove the casserole from the oven and scatter the French fried onions evenly over the top. Return to the oven and bake for another 5-7 minutes, until the onions are golden brown. Ensure the chicken is cooked through by checking it has reached an internal temperature of 165°F (74°C). Let it rest for a few minutes before serving.