Add the marinade ingredients and rub it all over the chicken.
Cover and chill 2 hours or overnight.
Make the sauce
Heat the oil in a saucepan over medium heat.
Add ginger/garlic paste & stir until fragrant.
Add onion and stir-fry briefly.
Add the bay leaf, chili powder, paprika, pepper & salt, peanut butter; stir-fry for another few minutes until all the ingredients well coated and onion softened.
Add chicken broth, coconut milk, vinegar, and sugar; stir well.
Simmer, uncovered, for about 5 minutes over low heat, stirring often.
Add butter and remove from heat. Set aside.
Fry the Chicken
In a large skillet, heat about 2 Tbsp of vegetable oil over medium-high heat.
Fry the chicken on high heat skin side down to brown.
Flip the chicken over so the skin is now on top.
Brown the chicken on all sides.
Finish the dish
Heat the oven. Set it at 375F.
Pour the prepared sauce over the chicken.
Bake for 50 minutes.
Remove the pan from the oven.
Let the chicken cool, uncovered in the pan, for 15 minutes.
Serve with bread or plain rice.
Notes
If you don't have an oven-Warm the sauce over medium-high heat. Add the pan-fried chicken to the sauce and simmer for about 10 minutes. Halfway through cooking, turn the chicken over and mix both sides with the sauce. Remove from heat.