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Wash and clean the chicken. Remove all excess fat from the chicken. Pat dry and keep aside.
Grind together fish sauce, ginger, garlic, lime leaves, lemon grass and chilli in a food processor/blender/mixie. Keep aside.
Heat a heavy bottom pan on low heat and add sugar and oil to it.
Let the sugar dissolve in oil over low heat till it caramelizes – ensure that the sugar doesn’t burn.
Add in the onions and the lemongrass paste and cook for 4-5 minutes.
Increase the heat to high and add in the chicken. Toss and mix the chicken well in the caramelized paste.
Reduce the heat to low, cover the pan and let the chicken braise in its own juices at a low simmer for 15-20 minutes. Stir the chicken every 5-6 minutes.
Add the coconut milk and simmer for another 10 minutes or so. Adjust seasonings to taste.
Serve garnished with coriander leaves and red chillies with steamed rice.