Add onion, jalapeno, chicken, curry paste, coconut milk, water, yogurt and tomato paste to a large Dutch oven. Stir to combine and place the lid on the dutch oven.
Transfer to the oven and cook for 2.5 – 3 hours. The sauce should thicken and reduce by almost half.
Serve immediately on a bed of jasmine or brown rice. Garnish with extra cilantro or basil and lime wedges if desired.