Peanut Sauce

4.56 from 134 votes
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Authentic and spicy peanut sauce with spices and rich taste. This homemade peanut sauce recipe goes well with chicken satay. This is the best peanut satay sauce you will find online!

Chicken satay with peanut sauce on a plate.
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Peanut Sauce Recipe

Peanut sauce is one of the most popular Asian dipping sauces. The sauce goes perfectly with chicken satay or beef satay.

My peanut sauce recipe is 100% homemade and authentic. It’s mildly spicy, made of aromatics, spices and dry roasted peanuts.

The amazing rich taste of this recipe is unmatched. It is the best recipe you’ll find online!


Ingredients

Ingredients for peanut sauce.

Ingredients For Peanut Sauce

  • Vegetable oil
  • Coriander powder
  • Palm sugar or sugar
  • Roasted peanuts
  • Salt
  • Sweet soy sauce
  • Tamarind pulp
  • Water
Ingredients for spice paste.

Ingredients For Spice Paste

  • Dried red chilies
  • Shallots
  • Garlic
  • Galangal
  • Lemongrass

See the recipe card for full information on ingredients.


How To Make This Recipe

Crushed peanuts in a food processor.

Step 1: Crush the peanuts with mortar and pestle or use a food processor to ground the peanuts. Set aside.

Tamarind pulps in strainer and tamarind juice in a bowl.

Step 2: In a small bowl, add the tamarind pulps plus 1/4 cup warm water. Set aside for 15 mins. Squeeze and extract the juice from the tamarind pulps and discard. Keep the tamarind juice.

Dried red chilies, garlic, shallots and galangal in a food processor.

Step 3: Chop the Spice Paste ingredients coarsely, transfer to a food processor and blend until very fine. Add a few tablespoons of water to help blending.

Spice paste in a pan.

Step 4: In a sauce pan, heat the oil on medium heat and add the spice paste.

Two sticks of lemongrass added into the spice paste.

Step 5: Add the remaining two strips of lemongrass to the spice paste. Cook the spice paste until it becomes aromatic and smell spicy.

Ground peanuts, water, tamarind juice, salt, sugar, coriander powder and sweet soy sauce in a sauce pan with spice paste.

Step 6: Add the ground peanuts, water, tamarind juice, salt, sugar, coriander powder and sweet soy sauce. Stir to combine well.

Peanut sauce in a sauce pan.

Step 7: Turn the heat to medium-low heat, stir continuously for about 5-10 minutes or until the peanut sauce thickens to your desired consistency. The oil and the peanut sauce should separate when it’s done.

Chicken Satay dipped in a bowl of peanut sauce served on a plate with onions and cucumbers.

Step 8: Let cool at room temperature and serve the peanut sauce with satay.


Asian Peanut Sauce

Spicy peanut sauce in a dipping bowl.

This sauce is very popular in Southeast Asia; almost every country has its peanut dipping sauce recipe.

There is Thai, Vietnamese, Malaysian, Indonesian versions and so on but the BEST peanut sauce is found in Malaysia.

The recipe I am sharing today is the best of all. The taste is exquisite, rich and complex!

Once you try it, you will never go back to peanut butter sauce or any recipes using peanut butter as the main ingredient.


What Do You Eat With Peanut Sauce

Satay sauce in a wooden spoon.

Peanut sauce is versatile and goes well with a variety of dishes.

Other than satay dipping sauce, you can use it as a salad dressing.

It tastes great on noodles and spring rolls, for examples: Goi Cuon Vietnamese fresh spring rolls and summer rolls.

It’s equally delicious on chicken, tofu, rice cakes and a variety of Asian dishes.

You can also use it in stir fry dishes.


Frequently Asked Questions

Can I use peanut butter instead of ground peanuts?

For the best and authentic flavors, I don’t recommend peanut butter as a substitute.

How do I store peanut sauce?

You can store it in the refrigerator for up to a week. Make sure you store the sauce in a container or in a bowl tightly covered with plastic wraps.
To serve, just reheat the sauce in a microwave for 1 minute.
You can also freeze the sauce in the freezer. To serve, thaw the sauce to room temperature and reheat in a microwave.

How many calories per serving?

This recipe is 199 calories per serving.

Easy and best peanut sauce recipe with ground peanut and spices as ingredients.

What To Serve With This Recipe

This dipping sauce is best served with chicken satay. You can also use the sauce for the following recipes.

I hope you enjoy this post as much as I do. If you try my recipe, please leave a comment and consider giving it a 5-star rating. For more easy and delicious recipes, explore my Recipe Index, and stay updated by subscribing to my newsletter and following me on FacebookPinterest, and Instagram for new updates.


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4.56 from 134 votes

Peanut Sauce

Authentic and spicy peanut sauce with amazing rich taste. This homemade peanut sauce recipe goes well with chicken satay. This is the best peanut satay sauce you will find online!
Prep Time: 15 minutes
Cook Time: 10 minutes
Total Time: 25 minutes
Servings: 8 People
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Ingredients  

  • 1 cup dry roasted peanuts, unsalted
  • 1 tablespoon tamarind pulps
  • 1/4 cup vegetable oil
  • 1 cup water
  • 1/2 teaspoon salt , or to taste
  • 2 1/2 tablespoons sugar, palm sugar preferred
  • 1 teaspoon coriander powder
  • 1 tablespoon sweet soy sauce, Kecap Manis

Spice Paste:

  • 8 dried red chilies, seeded and soaked in warm water
  • 3 cloves garlic, peeled
  • 4 cloves small shallots, or pearl onions, peeled
  • 1 stalk lemongrass, cut into 3 strips, use only 1 strip for the Spice Paste
  • 1/2 inch (1cm) galangal, peeled

Instructions 

  • Crush the peanuts with mortar and pestle or use a food processor to ground the peanuts. Set aside.
  • In a small bowl, add the tamarind pulps plus 1/4 cup warm water. Set aside for 15 mins. Squeeze and extract the juice from the tamarind pulps and discard. Keep the tamarind juice.
  • Chop the Spice Paste ingredients coarsely, transfer to a food processor and blend until very fine. Add a few tablespoons of water to help blending.
  • In a sauce pan, heat the oil on medium heat and add the spice paste.
  • Add the remaining two strips of lemongrass to the spice paste. Cook the spice paste until it becomes aromatic and smell spicy.
  • Add the ground peanuts, water, tamarind juice, salt, sugar, coriander powder and sweet soy sauce. Stir to combine well.
  • Turn the heat to medium-low heat, stir continuously for about 5-10 minutes or until the peanut sauce thickens to your desired consistency. The oil and the peanut sauce should separate when it’s done.
  • Let cool at room temperature and serve the peanut sauce with satay.

Video

Notes

  • You may use Planters brand unsalted dry roasted peanuts.
  • Cook the spice paste until it becomes aromatic and smell spicy.
  • The oil and the peanut sauce should separate when it’s done.

Nutrition

Serving: 1g, Calories: 199kcal, Carbohydrates: 11g, Protein: 5g, Fat: 16g, Saturated Fat: 2g, Polyunsaturated Fat: 7g, Monounsaturated Fat: 6g, Trans Fat: 0.05g, Sodium: 275mg, Potassium: 186mg, Fiber: 2g, Sugar: 5g, Vitamin A: 133IU, Vitamin C: 1mg, Calcium: 26mg, Iron: 1mg

Nutrition information is automatically calculated, so should only be used as an approximation.

Please rate and comment below!

About Rasa Malaysia

Bee is a recipe developer and best-selling cookbook author, sharing easy, quick, and delicious Asian and American recipes since 2006. With a strong following of almost 2 million fans online, her expertise has been featured in major publications, TV and radio programs, and live cooking demos throughout the United States and Asia.

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129 Comments

  1. Lidya Kashevaroff says:

    in my trader joe they have a machine and the peanuts you make your peanut paste can i used that

    1. Rasa Malaysia says:

      I am not familiar with the machine you talked about.

  2. Matt says:

    Looking forward to making this. What type of dried red chilies should I use? I have many different types and the store has even more.

  3. Tanuja says:

    How do I substitute the tamarind pulp and its juice if I only have this tamarind concentrate (the texture is very syrupy, NOT a paste): https://smile.amazon.com/gp/product/B00I9P242U/ref=ppx_yo_dt_b_search_asin_title?ie=UTF8&psc=1

  4. OnlyFoodWithSpices says:

    I made it in the thermomix and it was delicious. My husband and I finished it in one seating! Thanks for the great recipe. I sub galangal with ginger and tamarind with tamarind paste. I also used an entire disc of palm sugar because breaking it to measure would be too tedious, and a tablespoon of sugar. (Just thought it would be a helpful tip for others :) )

    1. Admin says:

      Thank.

  5. jeff says:

    hi,
    i tried this twice, turn our great but doesnt seem to refrigerate well, my second attempt i added more water but the issue persist. tia

  6. Eloise Lee says:

    Tumeric doesnโ€™t go with this recipe ?

    1. Rasa Malaysia says:

      Why don’t you try?

  7. Yok Ji Pang says:

    I can’t find Tamarind. Can I opt out this ingredient? Thanks

    1. Rasa Malaysia says:

      You can use vinegar for the sour taste.

  8. Mel says:

    Hi there

    I am just cooking the peanut sauce now and I have been stirring it for about 45 mins and the oil doesnt seem to separate – what do I do or did I do something wrong or do I keep stirring? Thanks

    1. Rasa Malaysia says:

      If it doesn’t separate then just continue to the next step.

    2. Debbie sornoso says:

      Hello!
      Can you freeze the peanut sauce?

      Thank you!

  9. Lucie says:

    Hi Bee, I really want to make your peanut sauce but I canโ€™t find shallots, tamarinds and galangal. What can I substitute these with? If I leave them out, would I get a vey different tasting sauce ? Please advise, thanks very much!

    1. Rasa Malaysia says:

      Yes, if you can’t find them, then no point making, especially tamarinds.

      1. Lucie says:

        Oh no!! But I really want to make this peanut sauce!! Its sounds mouth-watering!! Can you please share another peanut sauce recipe that calls for fewer ingredients?

        1. Rasa Malaysia says:

          https://rasamalaysia.com/thai-peanut-sauce/

        2. Meee says:

          You can buy all the ingredients on Amazon thatโ€™s what I had to do

  10. Jonah says:

    I have traveled all around Asia and so far, Malaysian peanut sauce is by far my favorite. I was first introduced to this style of peanut sauce at a Singaporean restaurant I would eat at while living in Japan called, โ€œMakan-Makan.โ€ I was there all the time because I could never get enough of the peanut sauce. When I moved back to the U.S. it really made me sad because I never thought I would have it ever again, but this sauce is identical and it taste so amazing. Thank you for the recipe. It makes me so happy.

    1. Rasa Malaysia says:

      Hi Jonah, yes, Malaysian peanut sauce is the best!