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Combine flour, salt and pepper in shallow dish. Add meat. Coat both sides with flour mixture. Pound flour into meat.
Heat oil in large deep skillet or Dutch oven on medium heat. Add meat. Brown on both sides, adding onion during last 2 to 3 minutes.
Add tomatoes, water, thyme and bay leaf. Bring to a boil. Reduce heat to low. Cover. Simmer 1 hour 15 minutes. Turn meat over. Add potatoes. Simmer until meat and potatoes are tender.
Arrange meat and potatoes on platter. Remove bay leaf from sauce. Pour sauce over meat and potatoes.