In a large skillet, cook chicken in hot oil until just browned. Using a slotted spoon, transfer chicken to a 13x9x2-inch (3-quart rectangular) baking dish.
Drain the pineapple, reserving the juice. Add the pineapple, water chestnuts, pepper, onion, and pimiento to chicken; set aside. Add water to the reserved juice to measure 1 cup. Combine the juice mixture, sugar, vinegar, cornstarch, soy sauce, and bouillon granules. Pour over the chicken.
Bake, uncovered, in a 350 degree F oven for about 30 minutes or until sauce is bubbly and chicken is no longer pink. Serve with rice. Makes 6 servings.