01 - Combine chicken pieces with salt, pepper, lime juice, garlic, smoked paprika, cumin, and red pepper flakes in a bowl. Toss thoroughly to coat, cover, and refrigerate for at least 15 minutes, up to 1 hour for deeper flavor penetration.
02 - Heat olive oil in a large skillet or Dutch oven over medium-high heat. Add marinated chicken pieces and sear for 2-3 minutes per side until golden brown develops. Transfer chicken to a plate, leaving rendered fat in the pan.
03 - In the same pan, add onion, bell peppers, and jalapeño. Sauté for 5-7 minutes, stirring occasionally, until vegetables soften and onion becomes translucent.
04 - Stir in diced tomatoes and tomato paste. Cook for 2-3 minutes, stirring frequently, until tomatoes begin to break down and release their juices.
05 - Return chicken and accumulated juices to the pan. Pour in coconut milk, stirring to incorporate all ingredients. Reduce heat to medium-low, cover, and simmer for 20 minutes until chicken is cooked through and sauce has slightly thickened.
06 - Taste the sauce and adjust seasoning with additional salt, pepper, or red pepper flakes as needed. Serve hot, generously garnished with fresh cilantro and accompanied by lime wedges. Pairs excellently with white rice or crusty bread.