SelectLayerByAttribute_analysis HELP!!

Hey all, starting to get frustrated, if anyone can lend some clarity it'd be greatly appreciated.

arcpy.SelectLayerByAttribute_management('mwstates','NEW_SELECTION','"STATE_NAME"=\'Illinois\' or '"STATE_NAME"=\'Indiana\''


Code keeps returning only 'Illinois', (I want both 'Illinois' and 'Indiana') I've tried numerous variations. I think I have to be missing something obvious here. Thoughts??