Cover mushrooms with boiling water; let stand for 30 minutes, then drain.
Remove and discard the woody stems and mince the mushrooms. Set aside.
Mix all ingredients for cooking sauce in a bowl and set aside.
In a medium bowl, combine the cornstarch, sherry, water, soy sauce, salt, pepper, and chicken.Stir to coat chicken thoroughly. Stir in 1 tsp of peanut or vegetable oil and let sit for 15 minutes to marinate.
Add 3 tsp to a wok or large skillet over medium high heat. Once oil is rippling add chicken and stir fry for 3-4 minutes. Remove pan and set aside.
Add the remaining oil to the pan.
Add ginger, garlic, chiles, and green onions; stir fry for about a minute or so.
Add the minced mushrooms, bamboo shoots, and water chestnuts and stir fry for an additional 2 minutes.
Return the chicken and sauce to the pan. Cook until thickened and hot.
Break cellophane noodles into small pieces, and cover the bottom of a serving dish. Pour the chicken mixture over the noodles. Serve with lettuce leaves for wrapping.