INGREDIENTS:

   30 dried chillies, seeded and soaked until softened or 2 - 3 level dsps chilli powder
   3 large onions, peeled and quartered
   5 cloves garlic
   12 candlenuts (or 16 macadamia nuts) - optional
   600gms (1.5lbs) roasted peanuts (salted - ok) 
   4 tbsps cooking oil
   6 tbsps tamarind juice (or juice of 2 medium lemons)
   4 - 5 tbsps dark brown sugar
   3 tsps ground coriander
   3 tsps meat curry powder
   3 tsps prawn paste or granules (terasi/blacan)
   3 cans coconut milk (not coconut juice!)
   Salt to taste


PREPARATION:

Coarsely crush peanuts in blender (a cupful at a time), transfer each batch to a bowl and set aside.

Drain water from softened chillies.

Put chillies in blender, add onions, garlic, candlenuts & prawn paste.

Blend until smooth and pour into a small bowl.

Add ground coriander and curry powder and mix to a paste.

Heat oil in a large non-stick saucepan over medium heat.

Fry paste, stirring constantly until fragrant. (4 - 5 mins)

Stir in crushed peanuts, tamarind juice, coconut milk, sugar and salt.

Bring to the boil and simmer over low heat, stirring occasionally until sauce thickens.

If using chilli powder, add to blended ingredients at the same time as ground coriander.


N.B. Besides being the "must have" sauce for satays, leftover sauce can be frozen and used in other recipes, namely: Chicken in Satay Sauce and Gado Gado (Indonesian Salad).