In a large frying pan over medium
heat, heat oil. Add chicken and brown evenly. Transfer to absorbent kitchen paper
to drain. Pour all but 2 tablespoons fat from
pan. Put lemon grass, shallots, garlic
and ginger in a blender. Mix to paste. Gently heat pan of fat, add spice
paste and stir for 2 minutes. Stir in coriander, turmeric and bay
leaves and stir-fry for 1 minute. Stir in coconut milk, chili sauce,
sugar, nuts and salt and stir fry for a further minute. Return chicken to pan and turn in
sauce. Cover and cook gently for 20
minutes, stirring and turning chicken frequently, until chicken
juices run clear. Discard bay leaves before serving.