Heat oil in a large skillet over medium heat. Season both sides of the chicken thighs with paprika, salt, onion powder, garlic powder, and black pepper. Add the chicken to the pan and sear for 6 to 8 minutes until golden brown. Flip the chicken and continue cooking for another 6 to 8 minutes until browned on the other side. Once done, transfer the chicken to a plate. This searing process not only locks in flavor but also creates a deliciously crispy exterior, setting the stage for the dish's rich, flavorful sauce.
Add the diced onion, minced garlic, and grated ginger to the skillet. Sauté for 3 to 4 minutes until the onion is softened and translucent, stirring frequently. Then, pour in the chicken stock, coconut milk, honey, Sriracha, and soy sauce. Bring the mixture to a simmer, then reduce the heat to low. Allow the sauce to cook for about 5 minutes, stirring often. This process melds the flavors together, creating a fragrant and rich sauce that beautifully complements the chicken.
In a small bowl or measuring cup, combine the lime juice and cornstarch, mixing until smooth. Stir this cornstarch mixture and lime zest into the pan, cooking while stirring constantly until the sauce begins to thicken, about 5 to 8 minutes. Taste the sauce and adjust the seasoning with salt, pepper, honey, and Sriracha as desired. Return the chicken thighs and any juices back to the skillet, and continue cooking for an additional 5 to 10 minutes until the chicken is heated through and fully cooked. This step ensures the chicken is well-coated in the flavorful sauce, enhancing each bite with a burst of tangy and spicy goodness.
To serve, sprinkle fresh cilantro over the chicken for a pop of color and flavor, and squeeze additional fresh lime juice on top if desired for an extra zesty kick. For added texture and a hint of sweetness, you can also sprinkle with toasted coconut. These finishing touches elevate the dish, enhancing its vibrant tropical essence and providing a visually appealing presentation.