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Place ½ cup (125 ml) coconut milk in a large pot and bring to a boil over medium heat.
Add the curry paste and stir to mix well, and let the mixture thicken, stirring frequently, until the mixture is very thick and the coconut oil separates from the paste, about 5 minutes.
If the paste sticks to the bottom of the pot, deglaze with a bit of coconut milk.
Add the remaining coconut milk and stir to mix, scraping the bottom to make sure no curry paste is stuck.
Add the palm sugar, 2 tablespoons (30 ml) tamarind paste, and 1 tablespoon (15 ml) fish sauce.
Stir to mix well, then taste the sauce and add more fish sauce as needed.
Add the chicken to the sauce and simmer gently over low heat, partially covered, for 35 minutes.
Add the potatoes, onions, and peanuts; if there is not enough liquid to keep the potatoes and onions barely submerged, top it up with more coconut milk or water.
Cook the potatoes over medium heat for 10-15 minutes, until they are fully cooked.
Taste and adjust the seasoning with more fish sauce or tamarind paste as needed.
Serve with jasmine rice.