Prepare all ingredients by chopping the onion, mincing the garlic, grating the ginger, and slicing the chili peppers.
Heat olive oil in a large skillet over medium heat. Add the onion and sauté until soft and translucent, about 5 minutes.
Stir in the garlic and ginger and cook for 1 minute until fragrant.
Add the chicken thighs and brown on both sides for 4–5 minutes per side.
Pour in the coconut milk and add the sliced chili peppers. Reduce heat and simmer gently for 20 minutes, allowing the flavors to develop and the chicken to cook through.
Stir in the lime juice just before serving. Serve hot, garnished with fresh cilantro. This Spicy Brazilian Coconut Chicken is delicious over rice or noodles.