Coconut Chicken Curry

This is the best Coconut Chicken Curry that I have ever had outside of a restaurant. At first the potatoes over rice thing seemed weird to me, but it melts in your mouth. Even my curry-hating husband eats this and takes the leftovers to school for lunch. It is originally found at Mel's Kitchen Cafe.

2 pounds boneless skinless chicken breasts, cut into 1/2-inch chunks or strips
1 teaspoon salt
1/2 teaspoon pepper
1 1/2 tablespoons vegetable or canola oil
2 tablespoons curry powder
1 1/2 teaspoons paprika (or you can substitute cayenne pepper to make it spicier.  I've never tried this.)
1/2 onion, thinly sliced
2 cloves garlic, crushed
4 medium red potatoes, cut into chunks
1 (14 ounce) can coconut milk, light or regular
1 (14.5 ounce) can stewed tomatoes, Italian style
1 (8 ounce) can tomato sauce
3 tablespoons sugar
Hot cooked Jasmine rice or brown rice

Season chicken with salt and pepper. Combine oil, curry powder, and paprika in a large skillet or saucepan and cook over medium-low heat for two minutes, until fragrant. Turn the heat up to medium and stir in onions and garlic and cook 7-9 minutes more or until onions are very clear. Add chicken, tossing lightly to coat with curry oil and cook for 7 to 10 minutes, or until chicken is no longer pink and is cooked through or nearly cooked through (it will cook more as it simmers later). Add potatoes, coconut milk, tomatoes (lightly crushed with your fingers), tomato sauce, and sugar. Cover and simmer for about 30-40 minutes.  Serve with rice of your choice.