Wash chicken pieces and pat dry. Season lightly with salt. Peel and cut potatoes into large chunks.
Soak dried chillies in hot water until soft (about 15-20 minutes), then deseed them. Roughly chop shallots, garlic, galangal, ginger, and lemongrass.
In a food processor or blender, combine the soaked chillies, chopped shallots, garlic, galangal, ginger, lemongrass, candlenuts, toasted belacan, turmeric powder, coriander powder, cumin powder, and fennel powder. Add a little cooking oil or water if needed to form a smooth paste.
Heat cooking oil in a large pot or wok over medium heat. Add the blended rempah and sauté for 10-15 minutes until fragrant and the oil separates from the paste.
Add the chicken pieces and potatoes to the pot. Stir well to coat them thoroughly with the rempah. Cook for 5 minutes, stirring occasionally.
Pour in the thin coconut milk or water, and bring to a simmer. Then add the thick coconut milk, tamarind paste (mixed with 2 tbsp water), salt, and sugar. Stir gently to combine. Bring to a gentle boil, then reduce heat to low, cover, and simmer for 25-30 minutes, or until chicken is cooked through and potatoes are tender. Stir occasionally to prevent sticking.
Taste and adjust seasoning if needed. Serve hot with steamed rice.
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