Season the Chicken: In a bowl, combine ground paprika, cumin, coriander, achiote powder (if using), salt, and pepper. Rub this spice mixture evenly over the chicken pieces.
Sear the Chicken: Heat vegetable oil or achiote oil in a skillet over medium heat. Add the seasoned chicken and cook until golden brown on one side, approximately 5–6 minutes. Flip and cook the other side for an additional 4–5 minutes. Remove the chicken from the skillet and set aside.
Prepare the Aromatics: In the same skillet, add a bit more oil if necessary. Sauté the minced onion, garlic, and tomato over medium heat. Season with additional paprika, cumin, coriander, achiote powder (if using), salt, and pepper. Cook until the mixture becomes soft and fragrant, about 2–3 minutes.
Incorporate Tomato and Coconut: Stir in the tomato sauce or ketchup and cook for about 1 minute. Add the shredded coconut and continue to sauté for another 2–4 minutes until the mixture is aromatic.
Create the Sauce: Reduce the heat to medium-low and pour in the coconut milk, mixing well to combine all ingredients.
Simmer with Chicken: Return the seared chicken to the skillet, ensuring each piece is well-coated with the sauce. Add the bay leaves and let the dish simmer over low-medium heat until the sauce thickens and the chicken is cooked through, approximately 10–15 minutes. Taste and adjust seasoning as needed.
Serve: Garnish with chopped cilantro if desired, and serve hot over rice or with your preferred side.
