Heat the cooking oil in a large skillet or wok over medium heat. Add the Panang curry paste and stir-fry for about 1 to 2 minutes until it becomes highly fragrant and deepens slightly in color.

Shake the can of coconut milk and pour in about half of it, aiming for the thick cream at the top. Stir constantly for 3 to 5 minutes over medium heat until a thin layer of reddish oil begins to separate and pool on the surface.

Add the sliced chicken to the pan, tossing well to coat every piece in the curry base. Sauté the chicken for 3 to 4 minutes until the outer surfaces turn opaque, ensuring the flavors penetrate the meat.

Pour in the remaining coconut milk, sliced red bell pepper, fish sauce, and palm sugar. Bring the mixture to a gentle boil, then reduce the heat to low and let it simmer for 5 to 7 minutes until the chicken is cooked through and the peppers are tender-crisp.

Stir in the slivered kaffir lime leaves and fresh Thai basil, simmering for just 1 minute until the herbs wilt and release their bright, citrusy aroma. Remove from the heat and serve immediately over a bed of warm jasmine rice.