In a small bowl, combine the sugar, fish sauce, water, rice vinegar, garlic, ginger, pepper and chiles. Set aside.
Heat the canola oil in a large deep pan.
Add the shallots and cook until soft (about 3 minutes).
Add the cubed chicken pieces and the reserved sauce. Bring to a simmer over high heat.
Simmer until the chicken is fully cooked then use a slotted spoon to remove the cooked chicken from the pan.
Increase the heat and continue simmering the sauce until it has reduced by half (it should have a syrupy consistency). Add the chicken back into the pan and toss to coat.
Garnish with cilantro and serve with rice or veggies.
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