Place chicken in a Dutch oven; add 1/3 cup milk and water and bring to a boil. Reduce heat; cover and simmer 40 minutes or until chicken is tender. Remove chicken from Dutch oven, draining off broth. Transfer chicken to a serving platter.
Combine 1/2 cup milk, whipping cream, and wine; set aside. Melt butter in a heavy saucepan over low heat; add flour, stirring until smooth. Cook 1 minute, stirring constantly. Gradually add milk mixture; cook over medium heat, stirring constantly, until thickened and bubbly. Add remaining ingredients; blend well. Spoon sauce over chicken.