Cut the chicken into bite-size pieces. Chop the onions and peppers into rough 1-inch pieces. Mince the garlic. Then crush the kaffir lime leaves to help release their oils.
Place a 14-inch skillet (or wok) over medium-high heat. Add the coconut oil. Once the oil melts, add the onions. Sauté for 1 minute, then add the peppers and garlic. Sauté another 2-3 minutes.
Move the veggies to the sides of the skillet and add the panang red curry paste and peanut butter to the center of the pan. Sauté the curry for 2-3 minutes to intensify the flavor, moving around the pan. Then add the kaffir lime leaves, coconut milk, and fish sauce. Stir to blend.
Stir in the chopped chicken and bring to a boil. Lower the heat and simmer for 10-15 minutes, until the chicken is cooked through and the sauce thickens. Stir occasionally. Remove from heat and stir in the basil leaves. Serve with rice, quinoa, or noodles.
There are some ingredients that may need to be purchased at an Asian food market, but this recipe is worth the trip! Most likely: panang red curry paste, kaffir lime leaves, thick canned coconut milk, fish sauce, and Thai basil. Kaffir lime leaves can be kept in the freezer. They turn dark, but retain their flavor. Kaffir lime leaves stay a little tough, even after cooking. You can eat them, eat around them, or take them out after cooking.