Heat 2 tablespoons of oil in a large skillet over medium-high heat. Add the chicken breasts and sear for 6–7 minutes per side until golden brown. Remove and set aside.
In the same skillet, add a little more oil if needed. Sauté the onion for 4–5 minutes until soft and translucent, then add the garlic and cook for 30 seconds.
Stir in smoked paprika and chili flakes. Pour in coconut milk, chicken broth, and lime juice, stirring well to combine.
Return the chicken to the skillet, cover, and simmer on low heat for 12–15 minutes until fully cooked and tender.
Taste and adjust seasoning with salt, sugar, or extra lime juice. This Spicy Brazilian Coconut Chicken should be creamy, balanced, and gently spicy.
Serve hot over rice or quinoa, garnished with fresh cilantro.