First, cook chicken either on the stove or in the oven until no longer pink and drain any extra fluid. Meanwhile cook rice according to instructions. In a large skillet, sauté onions, serrano pepper, and garlic in olive oil until golden. Then add curry paste and sauté for a minute before adding the coconut milk. Smack the lemongrass on the counter a few times to release its flavor and add it to the liquid.
Now add the slices of chicken breasts and bell peppers. Bring to a simmer and cook for 15 minutes. Add water chestnuts and cook for another 5 minutes. Remove lemongrass, top with green onions and cilantro, and serve with a lime slice and the rice.