Place butter in a large skillet.
Wash potatoes and pat dry. Leave potatoes whole or cut in halves depending on size, and place in skillet in a single layer.
Add water and bring just to a boil; reduce heat and simmer covered for about 15 minutes or until potatoes are tender.
Remove cover from skillet increase heat to medium-high and continue to simmer until the water has evaporated.
Continue to cook stirring frequently until butter browns and coats the potatoes.
Stir in lemon juice and sprinkle with fresh chives if desired. Serve warm.
Cut any large potatoes in half if necessary for more uniform sizes. You do not need to stir much until the water is mostly evaporated.