Season the chicken with salt and pepper. Heat the avocado oil in a Dutch oven over medium-high heat and brown the chicken in two batches, 3 minutes a side. Set aside.
Lower the heat to medium. Add the onion and cook 5 minutes until soft. Stir in the garlic, ginger, tomato paste, smoked paprika and bay leaf and cook 2 to 3 minutes, until the paste darkens to brick red.
Add the diced tomatoes and scrape up the browned bits. Whisk in the peanut butter and 1 cup of broth until smooth, then add the rest of the broth.
Return the chicken and any juices to the pot with the sweet potato. Drop in the whole scotch bonnet. Bring to a simmer, cover partly and cook 25 minutes, stirring now and then so the bottom does not catch.
Uncover and simmer 5 to 10 minutes more, until the sweet potato is tender and the sauce coats a spoon. Remove the bay leaf and the pepper. Taste for salt.
Serve with lime wedges, chopped peanuts and cilantro.