Preheat oven to 350 degrees
Cook vermicelli noodles according to package directions.
Return drained noodles to the pot
Combine soups, mushrooms, chicken, water, sour cream, parmesan cheese, salt and pepper. Add this mixture back to the pot and toss with noodles.
Divide mixture among 2 baking dishes, each about 8 x 8 inches, or one large 9 x 13 baking dish. Sprinkle the tops with cheddar cheese, then cover with aluminum foil.
Bake covered for 30 minutes, then remove the foil and bake an additional 5 minutes to melt and brown the cheese.