Preheat oven to hot, 200C. Using a small, sharp knife, make several deep incision into the lamb and press a slice of garlic into each slit. Brush with oil. Sprinkle with salt and pepper.
Place lamb on a greased wire rack in a baking dish. Then add water to baking dish.
Bake lamb for 25 mins. Remove from oven and spread with combined honey and mustard. Return to oven and bake for a further 10-20 mins, until cooked to taste. Rest lamb for 10 mins, loosely covered with foil, before serving.
Meanwhile to make the peperonata, heat oil in a large frying pan on medium. Saute capsicum, onion and garlic for 2-3 mins until capsicum softens slightly. Add the tomatoes and cook, stirring occasionally, for 4-5 mins until tender. Stir in the basil and season to taste.
Serve lamb with peperonata. Sprinkle with extra basil leaves.
