In a large pot, bring a generous amount of salted water to a boil. Add the gnocchi and cook according to the package instructions, usually about 2-3 minutes until they float to the surface. Drain and set aside.
In a large skillet over medium heat, add the shredded chicken and cook for 2-3 minutes to heat through.
Lower the heat and add the softened cream cheese to the skillet, stirring until it melts and combines with the chicken.
Gradually pour in the chicken broth, stirring continuously until the mixture becomes creamy and smooth.
Add the garlic powder, onion powder, dried Italian herbs, and season with salt and pepper to taste.
Stir in the shredded cheddar cheese, allowing it to melt fully into the sauce before adding the cooked gnocchi to the skillet.
If using, add the frozen peas and stir until heated through, about 2 minutes.
Remove from heat and let the dish sit for a minute before serving to thicken slightly.
Serve warm, garnished with freshly chopped parsley for a burst of color.