Season the lamb shoulder chops with salt, pepper and set aside for 15 minutes, just to take the chill off the meat.
Combine flour with salt and pepper. Dredge seasoned chops in flour and shake off all excess flour.
In a large, heavy-bottomed pot or Dutch oven, heat 2 tablespoons oil over medium-high heat. Add the seasoned lamb shoulder chops and sear them on all sides until they develop a golden-brown crust. Remove the lamb from the pot and set it aside.
In the same pot, add 1 tablespoon of oil, sauté the quartered onions and whole jalapeno pepper until the onions become translucent and the jalapeno begins to char, about 4 minutes. Add the minced garlic and continue cooking for another minute. Add blended tomatoes and bay leaf allowing the aromas to infuse the dish.
Return the seared lamb shoulder chops to the pot. Pour in the chicken broth . Bring the mixture to a gentle boil, cover then reduce the heat to low and let it simmer for about 1 hour or until the lamb becomes tender and begins to pull away from the bone.
Add the sliced carrots and diced potatoes to the stew. Continue simmering until the vegetables are soft and fully cooked, approximately 20-25 minutes.
Finally, stir in the frozen peas and let them cook for an additional 5 minutes until they are heated through.
Adjust the seasoning to taste with salt and pepper if needed.