How to Make It
Preheat the oven to 400°. In a large, deep ovenproof skillet, heat the oil. Season the chicken with salt and pepper and add to the skillet, skin side down. Cook over moderately high heat until richly browned, about 4 minutes per side. Transfer the chicken to a large plate, skin side up.
Add the onion, red and green bell peppers and garlic to the skillet and cook over moderately low heat, stirring occasionally, until softened, about 10 minutes. Add the cherry tomatoes, piquillo peppers and thyme; once the tomatoes are hot, pour in the wine and simmer over moderately high heat for 1 minute. Stir in the water and bring to a boil. Return the chicken to the skillet, skin side up. Cover tightly and braise in the oven for about 20 minutes, until the chicken is cooked through.
Transfer the chicken to a large, shallow serving dish. With a slotted spoon, transfer the vegetables in the skillet to the baking dish and cover with foil to keep warm. Boil the cooking juices over high heat until reduced to 1 cup, about 10 minutes. Add the serrano ham and bring to a simmer. Remove from the heat and season with salt and pepper. Pour the juices over the chicken and vegetables and serve.