Swiss Steak Supper

1/4 cup all-purpose flour
1 tsp salt, optional
1/4 tsp pepper
1 1/2 lbs round steak ( 1/2 inch thick ), cut into serving sized
pieces
1 tbsp vegetable oil
1 can ( 28 oz ) diced tomatoes, undrained
1 medium onion, sliced
1 can ( 4 oz ) whole green chiles, drained
4 medium red potatoes ( about 1 lb ), peeled and quartered
4 carrots, cut into 2-inch chunks
2 tbsp cornstarch
2 tbsp water

In a large resealable plastic bag, combine flour, salt if
desired and pepper. Add steak and shake to coat. In a skillet
over medium heat, brown steak in oil on both sides. Add tomatoes
and onion. Place chiles over meat; bring to a boil. Reduce heat;
cover and simmer for 30 minutes. Add potatoes and carrots for
70-80 minutes or until meat and vegetables are tender. Combine
cornstarch and water until smooth; stir into skillet. Bring to a
boil, stirring constantly until thickened and bubbly.