• Remove the skin off the chicken (see notes) and place in a large bowl.
• Dice half of the peppers and slice the other halves into thin strips. Dice half the onion and cut the remaining half into thin slices.
• To the chicken bowl, add the diced peppers, diced onion, lime juice, garlic, oregano, Sazon (if using), 1 teaspoon salt and 1/4 teaspoon pepper. Toss to combine and set aside to marinate for at least 15 minutes, one hour (refrigerated) is best.
• Heat oil in a large skillet that has a lid over medium-high heat. Sprinkle the sugar in the middle of the pan (if using). As soon as the sugar starts to turn brown, carefully, add the chicken pieces, leaving behind as much of the chopped vegetables and marinade as possible. Do not discard the marinade. Cook, undisturbed, until chicken pieces have browned, about 3 minutes. Flip and cook for another 2 to 3 minutes.
• Add 1/4 of water to the bowl with the leftover marinade and mix to combine. Sprinkle the mixture all over the chicken. Cover, and simmer over medium-low heat, stirring the chicken around once or twice, about 20 minutes.
• In a small bowl, mix the tomato paste, chicken bouillon, if using, and 1/4 cup water.
• Remove the lid and add the chopped tomatoes, sliced peppers, sliced onion, and bay leaf, if using. Drizzle in the tomato paste mixture, cover, and simmer again until the vegetables have slightly softened, and the chicken is cooked through, about 15 minutes more.
• Add the olives and a few tablespoons of olive brine. At this point you can add 1/4 cup more water if you feel it needs it, I rarely do. Cook, uncovered, to allow all the sauce to thicken just slightly, about 3 minutes. Taste and adjust seasonings with a little salt and pepper.
• Stir in the fresh cilantro and serve with rice and beans, if desired.

Notes:

• Sazon: Though not essential, this classic Latin seasoning will add more authentic flavor and rich color to your pollo Guisado. It is hard to find in stores unless you live near a Latin American market, but you can easily make your own with easy to find spices. Simply mix until combined: 1/2 teaspoon garlic powder, 1/4 teaspoon dried oregano, 1/4 teaspoon ground cumin, 1/4 teaspoon achiote powder (or paprika), 1/4 teaspoon salt, 1/4 ground coriander, and 1/4 teaspoon black pepper. Tip: Double or triple the batch to sprinkle on so many other dishes such as taco meat, picadillo, chili, arroz con pollo, etc.
• Chicken bouillon: Again, not essential but adds more depth of flavor to the guisado. I use sodium reduced Better Than Bouillon, but any chicken bouillon will work here.
• Chicken skin: Most Dominicans remove the chicken skin from the bone-in chicken to make pollo guisado. It is super easy to remove the skin off chicken thighs but not so much from the drumsticks. To remove from the drumstick, I pull back as much of the skin as I can, and then use kitchen shears to cut it off. Don’t struggle too much with it, it’s ok if some, or all stays on. Alternatively, use all chicken thighs if you prefer.
• Make it ahead: Pollo guisado is a wonderful dish to make ahead! Like most braises, it tastes even better the next day. To make it ahead, prepare the dish in its entirety then refrigerate, tightly covered, until ready to use or for up to 3 days. See reheating suggestions in section below.
• To store: Place pollo guisado leftovers in an airtight container and refrigerate for up to 4 days.
• To reheat: Whether you have a small or large amount of pollo guisado, I recommend reheating it on the stovetop. Place the pollo guisado in a skillet over medium heat. Add 1/4 to 1/2 cup water and heat until chicken is completely warmed through.