In a small skillet, saute mushrooms in 1 to 2 tablespoons evoo until just soft. Add water chestnuts and remove from heat and set aside.
In small bowl, combine lime juice and remaining 1 tablespoon evoo. Dip each chicken part in mixture, covering completely.
On foil-lined baking pan, arrange chicken in single layer; sprinkle with salt and pepper.
Arrange oven rack at least 6-inches from heat and set temperature to broil. Broil chicken about 15 minutes; turn and pour remaining lime-oil mixture over chicken.
Broil about 15 minutes more, until fork can be inserted into chicken with ease.
Pour mushroom mixture over chicken and return to oven for about 2 minutes, until mushrooms are hot.