PREPARATION:

1. Cut chicken crosswise into 3/8-inch-wide strips; place in shallow glass dish.
2. Combine soy sauce, lime juice, garlic, ginger and red pepper flakes in small bowl. Reserve 3 tablespoons mixture. Add water to remaining mixture. Pour over chicken; toss to coat well. Cover; marinate in refrigerator at least 30 minutes or up to 2 hours, stirring mixture occasionally.
3. Soak 8 (10- to 12-inch) bamboo skewers 20 minutes in cold water to prevent them from burning; drain. Prepare grill for direct cooking.
4. Meanwhile, for peanut sauce, combine coconut milk, 3 tablespoons reserved soy sauce mixture and peanut butter in small saucepan. Bring to a boil over medium-high heat, stirring constantly. Reduce heat and simmer, uncovered, 2 to 4 minutes or until sauce thickens. Keep warm.
5. Drain chicken; reserve marinade. Weave 3 to 4 chicken strips accordion-style onto each skewer, alternating with green onion pieces. Brush chicken and onions with reserved marinade. Discard remaining marinade.
6. Place skewers on grid. Grill skewers on uncovered grill over medium-hot coals 6 to 8 minutes or until chicken is no longer pink, turning halfway through grilling time. Serve with warm peanut sauce for dipping.