In large saucepan, saute the mushrooms, carrots, onion and green pepper in butter until vegetables are crisp-tender.
In a large bowl, combine the flour, salt, pepper and sage; stir in milk and broth until smooth. Gradually add to vegetable mixture. Bring to a boil; cook and stir for 1-2 minutes or until thickened; Add peas and chicken.
Simmer, uncovered, for 4-6 minutes or until vegetables are tender. Serve with biscuits.