In a large sauce pan heat the butter and olive oil over medium- high heat. Add the chicken pieces and brown on all sides. Remove the chicken from the pan and set aside.
Add the onion to the sauce pan and cook for about 3 minutes or until translucent.Then add the garlic and cook for 1 minute more.
Return the chicken to the saucepan and season with salt and pepper. Add the water and chicken bouillon. Cook over medium- low heat for about 30 minutes, stirring occasionally.
Add the potatoes and cook for 10 minutes more. Add the capers and heavy cream and cook for an additional 15 to 20 minutes.