In a pot, combine together chicken pieces, vinegar, water, bay leaf, chopped garlic, grated ginger, salt and pepper and without stirring, bring to a boil over high heat.

Reduce heat to medium, cover and simmer for 30 minutes or until chicken pieces are tender. Drain and set sauce aside.

Heat oil in a skillet over medium heat. Add chicken and sauté until brown. Transfer browned chicken to a plate.

Pour off all fat from skillet. Return skillet to the heat, add browned chicken and reserved sauce. Scrape browned bits at the bottom of skillet and simmer uncovered until liquid has thickened and reduce in half.

Add coconut milk and cook stirring for 2 more minutes.

Serve with steamed rice.