Begin by melting half of the butter in a large stock pot, while keeping the remaining butter in the fridge for later use in preparing the dumpling dough.
Once the butter has melted, add the celery, carrots, and onion to the pot. Sauté over medium heat until the onions become translucent, which should take approximately 5 minutes. After cooking the veggies for 5 minutes, sprinkle in the dried parsley and garlic powder.
Pour in the chicken broth and water, then add the shredded chicken, stirring to combine all the ingredients. Allow the soup to simmer over medium heat as you prepare the dumpling dough.
Slice the remaining butter and place it in a bowl with the flour and baking powder. Use a pastry cutter or fork to blend the butter into the flour until it resembles coarse crumbs. Gradually stir in water until the dough begins to come together. Divide the dough into small balls, about 1/2 to 1 inch in diameter.
Carefully drop the dumpling balls into the soup, ensuring they are evenly distributed. Avoid stirring the soup after adding the dumplings.
Cover the pot with a lid, reduce the heat to low-medium, and let the soup simmer for 20 minutes.
If you prefer a thicker consistency, mix 1 1/2 tablespoons of cornstarch with water to create a slurry. Stir the slurry into the soup, stirring constantly until the soup has thickened to your liking.
Serve the warm and comforting chicken and dumpling soup, and savor every delicious spoonful!