Place lamb in a large bowl or container and sprinkle with 2 teaspoons salt, pepper and lime juice or vinegar. Cover and let sit at room temperature for 1 hour. If you are marinating the meat for longer than 1 hour you should refrigerate it and bring it to room temperature 1 hour before cooking.

Drain lamb and pat it dry, reserving marinade. Dredge lamb lightly in flour. Heat oil over medium heat in a deep, shallow pan or Dutch oven. Brown lamb on all sides, about 3 minutes per side — you can do this in batches. Transfer lamb to a plate when done.

Add bacon or pancetta to the pan and sauté until browned, 5 to 7 minutes. Add onions, garlic and bell peppers. Reduce the heat to low and sauté vegetables for 5 to 6 minutes, until caramelized and soft. Add sherry or wine and scrape the pan to pick up the toasted parts on the bottom of the pan.

Return lamb to the pan and add reserved marinade, crushed tomatoes, cumin, paprika, oregano, remaining 1 teaspoon salt, rosemary and bay leaf. Cover and simmer over low heat or in a 350º F oven until lamb is tender, 1 1/2 to 2 hours. Turn the lamb every 30 minutes or so to ensure that it keeps moist and cooks evenly. Add water if the sauce reduces too much.

Transfer to a serving bowl. Discard bay leaf, stir in parsley and serve over rice, mashed potatoes or over bread slices; garnish with olives.