Prepared in 50 minutes or less.
Preheat oven to 400°F.
In a large and deep oven-proof skillet, heat olive oil. Season chicken with salt and fresh pepper and add to hot skillet with the skin side down. Cook over medium high heat until richly browned, approximately 4 minutes each side. Transfer the chicken to a plate, skin side up.
Add onion, red and green bell peppers and garlic to skillet over low heat. Stir occasionally until softened, approximately 10 minutes. Next, add cherry tomatoes, piquilla peppers and chopped thyme. Add wine and simmer over medium heat for 1 minute. Gently stir in the water and bring to a boil. Add chicken skin side up and cover tightly to braise inside oven for 20 minutes or until chicken is cooked through.
Transfer chicken to a large platter. With a slotted spoon, transfer all vegetables inside the skillet to the baking dish and keep warm by covering with foil. Boil the remaining juices over high heat until liquids are reduced to 1 cup, approximately 10 minutes.
Add the Serrano ham and bring to a simmer. Remove from heat and season with salt and pepper. Pour pan juices over the chicken and vegetables. Serve immediately. Serves 4.