Prepare the spice paste by blending the onion, garlic, ginger, curry powder, coriander, cumin, turmeric, and chili paste until smooth.
Heat the vegetable oil in a large pot over medium heat, then add the spice paste. Fry for about 5-7 minutes until the paste darkens and the oil separates.
Add the chicken pieces to the pot, cooking until they are lightly browned on all sides, about 10 minutes.
Pour in the coconut milk, stirring to combine, and bring the mixture to a gentle simmer.
Cover the pot and let it simmer on low heat for 30-40 minutes until the chicken is tender and fully cooked.
Adjust seasoning with lime juice and additional chili paste if desired, stir well, and let it sit for a few minutes before serving.
Serve hot, garnished with fresh cilantro, alongside steamed rice or bread of your choice.