In a shallow dish, combine flour, salt and pepper; dredge chicken. In a skillet, melt butter over medium heat. Brown the chicken on both sides. Remove and keep warm.
In the same skillet, add water, cranberries, brown sugar, nutmeg and vinegar if desired. Cook and stir until the berries burst, about 5 minutes. Return chicken to skillet. Cover and simmer for 20-30 minutes or until chicken is tender, basting occasionally with the sauce. Serve over rice if desired. Yield: 6 servings.