Pat the chicken dry with paper towels and season generously with salt and pepper. Heat a large skillet over medium heat and add olive oil until shimmering. Place the chicken pieces in the pan and brown for about 5 minutes on each side, until golden and cooked through. Remove from the skillet and set aside.
Add the minced garlic and smoked paprika to the same skillet, cooking for 30 seconds until fragrant and slightly toasted. This builds the flavor base for the sauce.
Pour in the coconut milk and stir, scraping up any browned bits from the bottom of the pan to incorporate all the flavors. Bring the mixture to a gentle simmer and cook for 3-4 minutes, allowing the sauce to slightly thicken.
Add the lime zest and fresh lime juice to the sauce, stirring well. Taste and adjust seasoning with salt and pepper as needed.
Return the browned chicken to the skillet, nestling it into the sauce. Cover and simmer on low heat for about 10 minutes, until the chicken is tender and coated with the flavorful sauce.
Uncover the skillet, turn up the heat slightly, and cook for another 2-3 minutes to allow the sauce to thicken slightly and the flavors to meld. The sauce should be creamy and cling to the chicken with a slight sheen.
Sprinkle chopped cilantro over the dish for a fresh, herbal finish. Serve the coconut chicken hot, spooning extra sauce over each piece.