Heat oil in a dutch oven over medium heat. Once hot add onion, and cook until beginning to soften, about 5 minutes.
Add garlic, spices, and sugar and cook until spices become fragrant (about 1 minute).
Add in butternut squash and cook down for 5 minutes, stirring often, until squash is beginning to soften.
Add coconut milk, chicken stock, and bring to a boil.
Reduce heat, and let simmer until butternut squash is tender.
Carefully transfer soup to a stand blender, in batches, and blend together until smooth. Alternatively you can use an immersion blender.
Transfer soup back into the pot and continue to cook for about 5 more minutes, or until the soup has reached your desired consistency.
Taste soup and adjust seasoning accordingly
Garnish with salt, pepper, and additional coconut milk.