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1. Add the vegetable oil to a large heavy skillet and heat to hot.
2. Add the chicken and cook for 5 minutes.
3. Whisk together 1 cup water, ketchup, soy sauce and pepper in a bowl.
4. Add the flour and mix well.
5. Remove the chicken to a cutting board.
6. Add the ketchup mixture to the skillet and bring to a boil.
7. Return the chicken to the skillet with the onion.
8. Turn the heat to low and let the mixture simmer for 20 minutes, covered.
9. Add the mushrooms and pepper and simmer for another 15 minutes.
10. Serve over hot cooked rice.
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