Peanut Sauce

4.56 from 136 votes

This authentic, spicy, and rich homemade peanut sauce is perfect for chicken satay. It’s the best peanut satay sauce you’ll ever make! Check out my video guide to get it perfect every time.

Prep Time15

Cook Time10

Total Time25

Course: Dipping Sauce

Cuisine: Malaysian Recipes

Keyword: peanut sauce

Servings: People

Author: Bee Yinn Low

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

The key to getting that rich red hue is using the right dried red chilies, like dried Thai chilies or chile de arbol. If your sauce looks more brown, it’s likely because of the type or amount of chilies you used. Older chilies lose their vibrancy, so go for fresh, bright ones. And if you use fewer chilies or skip them, the sauce will turn out more brown—that’s just how it is.
If the oil isn’t separating, just give it more time—patience is key! Keep the heat at medium-low so everything breaks down and releases its natural oils. If there’s too much water, it’ll take longer, so let it simmer until it thickens up. And don’t skimp on the oil—it helps with separation.
If your sauce is too thick, just add a bit of water and stir until it loosens up. And don’t over-blend the peanuts—grinding them too fine can make the sauce pasty.

Nutrition