Heat a Dutch oven coated with cooking spray over medium-high heat.
Add lamb; cook 5 minutes, browning on all sides.
Add onion and garlic; saut 8 minutes, stirring frequently.
Add wine, scraping pan to loosen browned bits.
Add water and next 7 ingredients (water through bay leaf); bring to a boil. Reduce heat, and simmer 1 1/2 hours or until lamb is tender. Discard bay leaf; sprinkle servings evenly with basil.