Rinse chicken and dry well. Cut into small pieces. Peel garlic and slice finely. Cut onion into halves lengthwise and then cut lengthwise into 1/2 inch strips. Heat oil in large frying pan over medium heat. Add a pinch of salt, garlic and onion. Fry over medium heat until onion becomes translucent. Add lemon grass and chili.

Fry 1 to 2 minutes until fragrant. Add chicken and cook until lightly browned. Add fish sauce, sugar and caramel sauce. Mix well. Add 1 cup water and cook 45 minutes or until chicen is tender. Stir occasionally and add more water if necessary. Makes 4 servings. Caramel Sauce: Mix 1/2 c sugar with 4 tablespoons of water in heavy saucepan. Bring to a boil over medium heat and let boil until mixture changes colour. Turn heat down to low and heat until brown. Add 1/2 cup water to mixture. Stir until sugar is dissolved. Remove from heat and store in a jar in the refrigerator.