Place peanut oil in wok or deep-fat fryer and heat over medium-high heat. Trim fat off chicken breasts and cut lengthwise into 1/2 inch wide strips. Combine sauce and set aside. In a medium-size bowl, combine sesame oil, sherry and cornstarch for chicken coating. Toss chicken strips in coating ingredients. When oil reaches 370 degrees or a haze forms above it, deep-fry chicken until tinged light golden brown, about 2 to 3 minutes. Remove from oil with a slotted spoon and allow to drain on several thicknesses of paper towels.
Pour oil out of wok; a small amount will remain. Replace over medium- high heat. Add sauce mixture and stir 20 seconds. Add cooked chicken and stir-fry about 10 seconds longer to warm and meld flavors. Serve immediately with steamed rice.