grind chili powder,turmeric powder,shallot,garlic,ginger,fennel powder,garam masala powder and salt with vinegar and 2 teaspoon water.make a smooth and fine paste.
marinate chicken pieces with this,and keep in a refrigerator for 30 minutes
boil 1/2 cup water in a curry pot then add marinated chicken pieces , thinly sliced coconut(length wise) and curry leaves in to it .cook for few minutes.
when 3/4 of the chicken cooked switch of the stove.
heat 3-4 teaspoon coconut oil in a non stick pan,then add cooked chicken pieces in to it.shallow fry in a medium flame until all sides become light brown.then remove pieces from oil and keep aside.
then add the remaining gravy in to the oil ,saute well till gravy become dark in color .then add fried chicken pieces mix well (the chicken pieces should be coated well with gravy) .switch off the stove.