Rinse chicken and dry well. Cut into small pieces. Peel garlic and slice finely. Cut onion into halves lengthwise and then cut lengthwise into 1/2 inch strips. Heat oil in large frying pan over medium heat. Add a pinch of of salt, garlic and onion. Fry over medium heat until onion is opaque. Add lemon grass and chili. Fry 1 2 minutes until fragrant. Add chicken and cook until lightly browned. Add fish sauce, sugar and caramel sauce. Mix well. Add 1 cup water and cook 45 minutes or until chicken is tender. Stir occasionally and add water if necessary. CARAMEL SAUCE: Mix 1/2 cup sugar with 4 tablespoons of water in heavy saucepan. Bring to a boil over medium heat and let boil until mixture changes color. Turn heat down to low and heat until brown. Add 1/2 cup water to mixture. Stir until sugar dissolved. Remove from heat and store in jar in refrigerator.