Start the instant pot in sauté mode. Heat oil and add panang curry paste.
Add the coconut milk. Mix the paste with the coconut milk. Cook for 2 minutes while stirring continuously.
Add sliced chicken pieces. Change the instant pot setting to manual mode for 4 mins with vent in sealing position.
When the instant pot beeps, quick release the pressure manually.
Change the instant pot setting to sauté mode. Add all veggies - carrots, mushrooms, bell pepper and onions. Add sugar and lemon juice.
Cook in sauté mode for about 5 mins until the veggies become tender. Add the basil leaves and salt to taste.
Garnish with thai red chilies. Panang Curry with Chicken is ready to be served with jasmine rice.