Chicken With Peaches

3-4 lbs skinless/boneless chicken breasts, cut in two-inch pieces.
3 tbls flour
½ tsp oregano
1 tsp salt
¼ tsp pepper
3 tbls oil
1 tbls butter
1 large onion, chopped
1 clove garlic, minced
1 cup celery, minced
¾ cup shredded carrot
1 can (15 oz) tomato sauce
1 ½ tbls brown sugar
1 tbls tarragon vinegar
1 ½ tsp chili powder
1 can (28 oz) peach slices

Drain peaches, reserving one cup of the syrup.

Combine flour, oregano, salt, and pepper. Dredge chicken in flour mixture.

Heat oil in a large skillet. Brown the chicken pieces and set aside. Sauté the onions, garlic, celery and carrot in remaining oil. Blend in remaining ingredients, except peaches, but including the syrup. Return chicken to skillet and bake, uncovered, at 350F 35-40 minutes. Alternatively, cover skillet with foil and continue cooking over low heat. Add peach slices and cook ten minutes more or until chicken is tender.

Serve over rice.

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