Heat oil in a pot over medium heat. Add the ham and brown. Add the onion, pepper, garlic, oregano, and cilantro, reduce heat to medium low and cook for 10 minutes, stirring occasionally.
Add the chicken and cook over medium heat for 5 minutes, stirring occasionally. Stir in the tomato sauce, bay leaf, olives, capers, vinegar, Adobo, and potatoes. Combine the liquid from the peas with water to equal 2-1/2 cups, and add. Mix well. Bring to a boil, cover, reduce heat to low, and cook for 45 minutes until chicken is tender. Stir occasionally.
Stir in the peas and optional butter, if desired. Cook uncovered for 5 minutes or until sauce reaches desired consistency.