Pat chicken dry, but do not salt! Heat oil in a large skillet, pot or Dutch oven over medium-high heat, then add chicken, skin-side down and cook until golden. Flip and brown the other side. Remove the browned chicken to a plate.
Meanwhile, in a medium bowl or large measuring cup, stir together the vinegar, soy sauce, water and coconut milk and set aside.
If you have excess fat in the pan, you can spoon off and discard all but 1 Tablespoon of it. Reduce heat under pan to medium heat. Add the garlic cloves, crushed peppercorns and red pepper flakes to the skillet and cook briefly, stirring, until the garlic is fragrant. Be sure not to burn the garlic, as it will introduce a bitter flavour to the dish.
Add the coconut milk mixture to the pan and stir until coconut milk melts. Bring to a boil. Return the chicken pieces to the pan and tuck the bay leaves in between the chicken. Reduce heat to medium-low, partially cover the pan (leaving about 1/3 open) and allow to gently simmer for 30 minutes. *If your skillet doesn't have a lid, simply lay a piece of foil over the top, leaving it about 1/3 uncovered.
*If making the Cilantro Lime rice, cook the rice with the water in a covered saucepan or rice cooker. Remove to a bowl and add lime zest, lime juice and cilantro. Stir together and serve warm.
After 30 minutes, remove the lid or cover completely and continue simmering and additional 15-20 minutes, flipping the chicken a couple of times. Cook until the liquid is reduced and slightly thickened. Don't reduce the sauce too much tough, as it will split at some point and be greasy. Stop cooking when there is still a good amount of sauce in the pan. If it is not quite as thick as you'd like, you can mix equal parts cornstarch and cold water together into a paste and add a bit at a time to the pan use it to thicken the sauce, as desired.
Remove from heat and remove and discard the bay leaves. Serve over rice, garlic rice or the optional Cilantro Lime Rice.
Notes
1. I tend to use bone-in/skin on chicken thighs, but bone-in/skin on chicken breasts, drumstick or a mixture of pieces also works. You can also use boneless, skinless chicken here, if you prefer. 2. Coconut vinegar is most classic in Adobo, but can be hard to find. White vinegar is a decent substitution or unseasoned Rice Vinegar. I tend to prefer Rice Vinegar as it has a smoother vinegar taste. Experiment with different vinegars to find your favourite. 3. Low-Sodium soy sauce is highly recommended, to avoid an overly salty dish. If you only have regular soy sauce, use a touch less.You can remove the chicken skin after browning the chicken, if you prefer, to reduce the fat in the sauce. You'll find more tips and substitution suggestion above this recipe card, as well as Step-by-Step photos!