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Heat oil in a large skillet over med-high heat. Season chicken with salt and pepper. Add the chicken and drumsticks skin side down to the pan and brown on both sides. Remove and place on a plate.
To the skillet, add the vinegar, soy sauce, garlic, half the chilies, black pepper, sugar, and bay leaves. Bring to a boil over med-high heat. Add the chicken, skin side up, reduce heat to low, cover, and let simmer for 30-35 minutes until cooked through and tender.
Remove chicken from pan onto a clean plate. Bring sauce to a boil over med-high heat and cook for about 5 minutes or until slightly thickened. (For a thicker sauce, mix together 1 1/2 teaspoon cornstarch with 1 1/2 teaspoons cold water. Pour into the boiled sauce and cook another 20-30 seconds until thickened.)
Remove the pan from the heat, discard bay leaves, and add the chicken back. Spoon sauce over the top of the chicken and garnish with remaining chilies.
Serve chicken and sauce over jasmine rice.