Heat the oil and butter in a large saute pan over medium-high heat. When the oil is hot add the chicken and cook, stirring occasionally, for 5 minutes.
Stir in the water, soy sauce, lime juice, onion, garlic, tomatoes, potatoes, bay leaves, and 1/2 tsp pepper and bring to a boil.
Cover the pan and reduce the heat to medium-low. Simmer over medium-low heat while covered for 20 minutes.
Take the lid off the pan and increase the heat to medium. Continue to simmer over medium heat while uncovered, stirring occasionally, until potatoes are tender and stew has thickened a bit, 15 to 20 more minutes.
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