Latin-Style Chicken and Rice
['2 pounds chicken thighs with skin and bone', '2 tablespoons unsalted butter, cut into bits', '1 tablespoon olive oil', '1 large onion, chopped (2 cups)', '3 garlic cloves, minced', '1 cup medium-or long-grain white rice', '1 cup reduced-sodium chicken broth', '3/4 cup water', '1/4 teaspoon crumbled saffron threads', '1 Turkish or 1/2 California bay leaf', '1 cup frozen peas (not thawed)', 'Garnish: chopped flat-leaf parsley']
Pat chicken dry and season with 3/4 teaspoon salt and 1/2 teaspoon pepper (total). Heat butter and oil in a 12-inch heavy skillet (at least 2 inches deep) over medium-high heat until foam subsides, then brown chicken, turning once, about 10 minutes total. Transfer chicken with tongs to a plate.
Pour off all but 2 tablespoon fat from skillet. Cook onion and garlic with 1/4 teaspoon each of salt and pepper over medium heat, stirring, until golden, about 6 minutes. Add rice and cook, stirring, 1 minute. Add broth, water, saffron, and bay leaf and bring to a full boil. Nestle chicken in rice, keeping as much rice around (rather than under) chicken as possible, and add juices from plate. Simmer, covered tightly with lid, over low heat until chicken is cooked through, rice is tender, and most of liquid is absorbed, about 25 minutes. Remove from heat and stir in peas. Cover with a kitchen towel and then lid and let stand until all of liquid is absorbed, about 15 minutes. Discard bay leaf.
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