Soak rice noodles according to package directions; drain.
In a 12-inch skillet cook chicken in hot oil over medium heat for 8 to 10 minutes or until chicken is no longer pink, adding stir-fry vegetables for the last 4 minutes of cooking. Remove chicken mixture from skillet.
In the same skillet combine coconut milk, the water, sugar, fish sauce, curry paste, salt, and black pepper. Bring to boiling. Stir in rice noodles and chicken mixture. Return to boiling; reduce heat. Simmer, uncovered, about 2 minutes or until noodles are tender but still firm and sauce is thickened. Sprinkle with basil.