In a saucepot, heat oil over medium-high heat. Add red onion, garlic and ginger, stirring continuously so as not to burn. After 2 minutes add the curry paste, habanero and bay leaves until well incorporated. Add peppers and stir again cooking for 2 minutes. Add zucchini and squash and cook for another 2 minutes. The mixture should be well coated at this point. If it starts to burn, lower the heat and add a little water to stop the burning on the bottom of the pan. Add the coconut milk and cilantro. Salt and pepper to taste. Lower the heat and simmer, covered, for at least a 1/2 hour, stirring occasionally.
During the cooking process you can adjust the balance of moisture by adding water or coconut milk so the consistency stays stew like. Adjust the salt and pepper to taste.
Serve over rice.
Recipe courtesy of Chris Siversen, Executive Chef, Bridgewaters