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Marinate chicken meat with curry powder and soy sauce for 15 minutes.
Soak dried chillies until soft and remove the membranes to reduce the spiciness. Blend candlenuts, garlic, shallots, ginger and dried chillies with curry powder.
Heat oil in a pot over medium heat. Add blended chilli paste and cook until fragrant.
Add chicken meat and mix well. Cook until the dish is slightly dry. Add water and cook over high heat.
Add potatoes, onions, lemongrass and curry leaves. Once it boils, lower the heat and allow to simmer for 30 to 40 minutes.
Add coconut milk and cook at high heat again. Once it boils, lower the heat. Add salt and sugar to taste.
Serve with bread or rice.