Simmer the coconut milk with the red curry paste until the oil starts to separate slightly.

Add the chicken and stir-fry. Pour in the water, cover, and let it cook for a bit so the flavors absorb. Add the Thai chili paste (nam prik pao).

Season with fish sauce and palm sugar. Let it simmer for a few more minutes.

Garnish with sliced kaffir lime leaves and red chili peppers. Serve hot with steamed rice or rice noodles.