Heat oil in a large nonstick skillet over medium heat. Add onions and garlic. Cook 10 minutes, or until onions begin to brown.
Add remaining ingredients, except peas. Mix well. Bring mixture to a boil, stirring frequently.
Then cover, reduce heat to low, and simmer 15 minutes.
Stir in peas, cover, and cook 20 more minutes, or until potatoes are tender.
Remove and discard bay leaf before serving.