An adage from Spain claims that food is generally fried in the south, roasted in the middle of the country, and stewed in the north. Accordingly, this stew version is reminiscent of the northern part of the country.
Remove skin from chicken. In a large plastic bag combine flour, salt, and ground red pepper. Add chicken, a few pieces at a time; shake to coat. In a 4-quart Dutch oven heat oil. Cook chicken in hot oil over medium heat about 10 minutes or until chicken is lightly browned, turning to brown evenly.
Add undrained tomatoes, potatoes, onion, olives, wine, capers (if using), dried basil and dried oregano (if using), and garlic to Dutch oven. Bring to boiling; reduce heat. Cover and simmer for 35 to 45 minutes or until chicken is tender and no longer pink. Remove chicken to a serving dish; cover and keep warm.
In a small bowl combine the water and cornstarch; add to potato mixture in Dutch oven. Cook and stir until thickened and bubbly. Cook and stir for 2 minutes more. Stir in fresh basil and oregano (if using). Pour thickened mixture over chicken in dish. If desired, garnish with a sprig of fresh basil or oregano. Makes 6 servings.