Gather all ingredients.
Whisk 1 tablespoon wine, 1 tablespoon soy sauce, 1 tablespoon sesame oil, and 1 ½ teaspoons cornstarch in a large glass bowl until smooth. Add chicken pieces and toss to coat. Cover the dish and refrigerate for 30 minutes.
Combine remaining 1 tablespoon wine, 1 tablespoon soy sauce, and 1 tablespoon sesame oil in a medium bowl. Whisk in chili paste, brown sugar, and vinegar. Add water chestnuts, peanuts, green onions, and garlic and toss to coat.
Transfer water chestnut sauce mixture to a medium skillet. Heat slowly over medium heat until aromatic.
Meanwhile, transfer chicken from marinade into a large skillet; cook over medium-high heat, stirring, until chicken is cooked through and juices run clear.
Combine water chestnut mixture and cooked chicken together in one skillet. Adjust heat and simmer until sauce thickens and coats chicken, 1 to 2 minutes.
