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Cut chicken into 1-inch pieces and place in a medium bowl. Stir together curry, ½ teaspoon of the salt, pepper and chili powder. Sprinkle over chicken, tossing to coat evenly. Cover and chill for 1 to 2 hours.
In a large nonstick frying pan, heat the oil over medium heat. Add the onion, basil, garlic, ginger, and peppers, and cook, stirring often, for 3-4 minutes, until onion and peppers start to soften.
Add the chicken and remaining ½ teaspoon salt and cook over medium heat for 5-6 minutes, flipping the chicken now and then, until the chicken is cooked through.
Whisk together the coconut milk and cornstarch until well-combined. Add the mixture to the skillet with the chicken, and whisk over medium heat, until the sauce simmers and thickens, 5-6 minutes. Serve over hot, cooked rice.