Coat a large Dutch oven with cooking spray; place over medium-high heat until hot. Add half of chicken pieces, browning on all sides. Remove chicken from skillet; set aside. Repeat with remaining chicken.
Add onion and garlic; sauté 3 minutes. Add broth, rosemary, salt, pepper, and bay leaves; stir well. Return chicken to skillet; top with potatoes. Cover and cook 30 minutes or until done, stirring occasionally.
Remove chicken and vegetables from pan with a slotted spoon; set aside, and keep warm. Discard bay leaves.
Combine water and cornstarch in a small bowl; stir well. Add cornstarch mixture to broth mixture in pan; cook 1 minute or until thick and bubbly, stirring constantly with a wooden spoon to loosen browned bits. Spoon broth mixture over chicken and vegetables.