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Cut chicken into bite sized pieces.
In a bowl, add chicken, red curry paste, curry powder, sugar, salt, and coconut milk. Mix until evenly coated. Cover with a lid or plastic wrap and let it marinate in the refrigerator for at least 30 minutes.
Preheat the air fryer to 375℉.
Thread marinated chicken to wooden skewers. Place them into the air fryer basket in one single layer and spray cooking spray on top.
Cook in the air fryer for 12-15minutes, flipping them halfway. The internal temperature of the chicken should reach 165°F (75°C).
Transfer the cooked chicken to a platter, sprinkle with chopped peanuts and fresh cilantro. Serve with the peanut dipping sauce and enjoy!
In a small bowl, mix together red curry paste, peanut butter, honey, soy sauce, salt, rice vinegar, coconut milk, and juice from the lime. Stir until smooth and creamy. Taste and adjust seasoning if needed.