In a medium heated skillet, melt butter.
Salt and pepper chicken on both sides. Add chicken and garlic to skillet. When browned on both sides and cooked through, take out of pan and set aside.
Turn heat down to medium low. Add milk, soup, mushrooms, cheese, red peppers, dill and garlic powder to the pan the chicken was cooked in. Scrape up the browned bits on the bottom of the skillet.
While making cream sauce, cook gnocchi according to package directions.
Dice or shred the chicken.
When the gnocchi is finished cooking, drain and add gnocchi and chicken to the creamed mixture. Heat through, stirring occasionally.