In a shallow bowl, combine flour, salt and pepper; dredge the chicken. In a large skillet, cook chicken in butter until browned on both sides. Remove chicken and set aside.
In the same skillet, combine the cranberries, water, brown sugar, vinegar and nutmeg; cover and simmer for 5 minutes. Place chicken on top; cover and simmer for 30 minutes. To serve, spoon cranberry mixture over chicken. Yield: 6 servings.