Cut the chicken into 3/4-inch cubes. Combine the cubes with the egg white, 2 tablespoons of water and 3 tablespoons of the cornstarch. Mix well.
Heat the 2 cups oil in a wok or frying pan to 280F (medium to medium high heat), or put 1 piece of chicken in the oil and, when the bubbles rise from it like Champagne bubbles, add the rest of the chicken. Stir the chicken slowly and cook until the pink is no longer visible. Drain in a colander.
Combine the bell peppers, scallions and ginger in a colander. Rinse in cold water. With a pair of scissors, cut the hot peppers lengthwise and then cut again widthwise, flaking the bits on top of the vegetables in the colander.
Combine the soy sauce, sherry, garlic, sugar, salt, 2 tablespoons of cold water, and the remaining 1 tablespoon cornstarch. Mix well.
Heat the 3 teaspoons oil in a wok until smoking. Stir-fry the vegetables for 5 minutes, or until bright in color. Add the chicken cubes and stir-fry for 30 seconds. Add the optional cocktail peanuts and toss 3 times.
Restir the sauce and add it to the chicken and vegetables. Toss 5 times quickly and serve.