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 cm 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 half 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 half cup water to mixture. Stir until sugar dissolved. Remove from heat and store in jar in refrigerator.