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Season chicken pieces with salt and pepper. Heat oil in a large skillet or saucepan and brown chicken slightly. Remove from the skillet and reserve. Add chopped onion, garlic and ají paste to the same skillet and cook stirring until onion is tender.
Return chicken pieces to skillet and add 2 cups of water. Bring to a boil and cook chicken for approximately 20 minutes. Stir in ground peanuts and continue cooking until sauce thickens.
Serve with white cooked rice and cooked potatoes.
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