In a large skillet or wok, heat the oil over medium heat. Once hot, add the sliced onion and sauté until it becomes translucent.
Stir in the minced garlic, grated ginger, and the sliced bell peppers. Cook for about 3-4 minutes until the vegetables are slightly softened.
Add the chicken pieces to the skillet. Cook until the chicken is no longer pink on the outside, stirring frequently to ensure even cooking.
Add the Panang curry paste and peanut butter to the skillet. Stir well to coat the chicken and vegetables, allowing the flavors to meld for a minute.
Pour in the coconut milk and bring the mixture to a gentle simmer. Allow it to simmer for about 10 minutes, stirring occasionally.
In a small bowl, mix the cornstarch with a splash of water to create a slurry. Add this to the curry to thicken the sauce, stirring well.
Stir in the light brown sugar, fish sauce, and lime juice. Taste and adjust seasoning as needed. Finally, fold in the chopped basil leaves just before serving.
Serve the Panang Curry hot over a bed of your favorite cooked rice. Enjoy the vibrant flavors and the comforting aroma that fills your kitchen!