To begin, blend shallots, garlic, candlenuts, turmeric, galangal, coriander seeds, and cumin into a fine paste. Add a small amount of water if necessary to help the blender run smoothly. Set aside and proceed to seasoning the chicken.
Rub chicken pieces with salt and white pepper. Allow to sit for 10 minutes to absorb flavour. While waiting, move on to sautéing the spice paste.
In a heavy based pot, heat the cooking oil over medium heat. Add the spice paste and sauté for 5–6 minutes until fragrant and the oil begins to separate. Then move to adding aromatics.
Add the bruised lemongrass, kaffir lime leaves, and bay leaves. Stir to coat everything in the spice mixture. Let it cook for another minute before adding chicken.
Place the seasoned chicken pieces into the pot. Stir to coat with the aromatic paste. Let it cook uncovered for 5 minutes to absorb the flavours. Transition to adding liquids.
Add the coconut milk and water. Stir gently to combine without breaking the coconut milk. Bring to a light simmer, then reduce heat.
Cover partially and simmer over low heat for 40–50 minutes, stirring occasionally. The chicken should be tender and the sauce slightly thickened. Check seasoning.
Taste the stew and adjust salt if needed. If the sauce is too thick, add a little warm water. If too thin, let it simmer uncovered for a few more minutes. Move to final preparation.
Once cooked, let the stew rest off the heat for 10 minutes to allow flavours to settle. This enhances the depth of taste. Prepare your serving accompaniments next.
Ladle the chicken and coconut broth into bowls. Garnish with fried shallots and serve with steamed rice or ketupat. Presentation tip: add a few slices of fresh red chilli for colour and mild heat.