In a medium bowl, mix cornstarch, crushed chili, garlic, soy sauce, ketjap manis, ginger, salt, pepper, rice flour, and all-purpose flour to form a paste. Add chicken pieces and stir to coat evenly. Cover and refrigerate for at least 30 minutes.
Heat 1 teaspoon sesame oil in a wok or frying pan over medium-high heat. Add marinated chicken and cook for 5–7 minutes, stirring occasionally, until golden brown. Remove chicken and set aside.
In a small bowl, combine all dragon sauce ingredients (water, ketchup, soy sauce, chili powder, Gochujang, cornstarch, sugar). Stir until smooth and set aside.
Heat 1 tablespoon sesame oil in the wok. Add cashews and cook for 90 seconds. Add sliced onion and bell pepper, cooking for 2 minutes. Stir in green onions, garlic, and ginger. Cook for another 30 seconds, stirring constantly.
Pour dragon sauce into the wok and cook for 1 minute until it starts to thicken. Return chicken to the wok and stir everything together. Cook for 1–2 more minutes, then remove from heat.
Transfer dragon chicken to a serving platter, sprinkle with additional salt and pepper if desired, and serve hot with rice or noodles.
Notes
For extra crunch, garnish with additional toasted cashews. Letting the chicken marinate longer deepens the flavor.