1In deep 12-inch skillet or 5-quart Dutch oven, heat oil over medium heat. Add chicken pieces; cook about 15 minutes, turning occasionally, until brown on all sides.
2Heat oven to 350°F. Place chicken in ungreased 11x7-inch (2-quart) glass baking dish. Top with onion slices. Sprinkle with salt, paprika and pepper. In small bowl, mix orange juice, honey, lemon juice, ginger and nutmeg; pour over chicken. Sprinkle olives over top. Cover with foil.
3Bake 45 to 60 minutes or until juice of chicken is clear when thickest piece is cut to bone (170°F for breasts; 180°F for thighs and drumsticks).
4Arrange chicken, onions and olives on platter. Pour pan juices into 1-quart saucepan. Heat to boiling. In small bowl, mix water and cornstarch; stir into juices. Heat to boiling, stirring constantly. Cook and stir 1 to 2 minutes or until slightly thickened. Garnish chicken with orange slices; serve with orange sauce.