Chicken in Garlic Sauce (Pollo al Ajillo)

1/2 cup olive oil
2 1/2-3 pounds chicken, cut in small serving pieces
Salt
2 tbsp. garlic powder
1/2 cup water
Juice of 1 lemon
Few strands saffron, diluted and crushed in very small amount of water

Heat oil in large skillet. Add chicken pieces and cook over moderate heat until golden brown. Place chicken pieces in large, shallow casserole. Salt. Pour off all but 4 tablespoons of oil in skillet. Add garlic powder. Stir in water and bring to boil. Pour over chicken. Add lemon juice and saffron. Cook, covered, over low heat about 15 minutes or until meat is tender. Serve, spooning sauce over chicken.