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Gather all ingredients.
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Whisk 1 tablespoon wine, 1 tablespoon soy sauce, 1 tablespoon sesame oil, and 1 ½ teaspoons cornstarch in a large glass bowl until smooth. Add chicken pieces and toss to coat. Cover the dish and refrigerate for 30 minutes.
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Combine remaining 1 tablespoon wine, 1 tablespoon soy sauce, and 1 tablespoon sesame oil in a medium bowl. Whisk in chili paste, brown sugar, and vinegar. Add water chestnuts, peanuts, green onions, and garlic and toss to coat.
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Transfer water chestnut sauce mixture to a medium skillet. Heat slowly over medium heat until aromatic.
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Meanwhile, transfer chicken from marinade into a large skillet; cook over medium-high heat, stirring, until chicken is cooked through and juices run clear.
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Combine water chestnut mixture and cooked chicken together in one skillet. Adjust heat and simmer until sauce thickens and coats chicken, 1 to 2 minutes.