Thai Peanut Sauce (Made From Scratch)

Looking for a new way to spice up your cooking? My satay sauce recipe with peanuts will definitely do the trick! This recipe uses real peanuts and makes a delicious satay sauce made from scratch! It combines the rich flavors of peanuts, lemongrass, and galangal, enhanced by the tangy taste of tamarind and lime juice, and the sweetness of palm sugar. Roasting the peanuts gives an extra nutty flavor, making this recipe a real standout.

Satay sauce is a staple in many Thai dishes, providing a rich, nutty, and slightly spicy taste that pairs well with chicken, tofu, and even vegetables. Making it at home allows you to control the ingredients and flavors, making sure you get the perfect balance of sweet, sour, and spicy to suit your taste.

This recipe is special because it teaches you to make authentic Thai satay sauce from scratch, using traditional ingredients like lemongrass, galangal, and palm sugar. Once you try this homemade version, you’ll never want to go back to store-bought again!

If you're pressed for time, I also have a quick and easy peanut satay sauce recipe that you can try as well.

Read on to learn exactly how to make this delicious satay sauce with peanuts recipe today!

What is Satay Sauce with Peanuts?

Satay sauce is a staple in Thai cuisine and features a delicious combination of rich, savory, sweet and slightly spicy flavors all in one! This recipe uses peanuts to make the recipe from scratch. You’ll end up with the tastiest satay sauce you’ve ever had. And it’s pretty simple to make, too. 

You must be wondering why bother making a satay sauce with peanuts. The main reason is flavor and texture. The extra ingredients and steps give this Thai peanut sauce more dimension and flavor. It’s definitely worth the extra effort, trust me!

Plus, it’s super versatile. It’s not just for satays! You can drizzle some on cold noodles with veggies or just freeze it in an ice cube tray to use another day. Reheat it in a low heat pan and you can use the sauce right away!

This recipe is the best way to make satay sauce with peanuts, trust me! You’re going to fall in love with the flavors! So, whether you’re a seasoned cook or a kitchen newbie, this satay sauce recipe with peanuts is worth a try.

Why You’ll Love This Satay Sauce Recipe with Peanuts

Ingredients You’ll Need to Make Satay Sauce with Peanuts At Home

All you need are some incredibly simple, pantry-staple ingredients to make this delicious peanut dipping sauce recipe at home.

Here's an overview of the specific ingredients for this recipe. For the exact ingredients and measurements, please scroll to the recipe card below.

• Peanuts: We’ll need unsalted, skinless peanuts. The peanuts will form the base of your satay sauce, providing a rich, nutty flavor and a satisfying crunch, especially if you opt for a chunky sauce. If you can't find skinless peanuts, it's okay, I'll show you how to remove the skins after you toast them.
• Lemongrass: Lemongrass will add a unique citrusy flavor to the sauce, complimenting the sweetness of the palm sugar and the spiciness of the chilies.
• Galangal: It will infuse the satay sauce with a sharp, pine flavor. Although galangal and ginger come from the same family they taste quite different. Ginger has a much stronger spicy floral flavour so do not use it as an substitute. If you cannot find galangal, you can omit it.
• Garlic: Garlic will add a garlicky flavor to the sauce, enhancing the overall flavor profile.
• Shallots: They will add a mild, sweet, and slight onion flavor to your satay sauce, complimenting the other ingredients nicely.
• Tamarind Pulp: This will add a tangy, slightly sweet flavor to the sauce. If you are using tamarind pulp, you will need to add some hot water to reconstitute it and strain out the seeds, skins, and pulp before you use it. If you are using tamarind paste (from a jar), make sure you are using ones from made in Thailand instead of ones from India. Tamarind concentrate from India is a lot stronger and sour than the ones from Thailand.
• Coconut Milk: This will give your satay sauce a creamy, rich texture and a subtle tropical flavor.
• Palm Sugar: Palm sugar will add a natural sweetness to the satay sauce, complementing the spiciness of the chilies and the tanginess of the tamarind and lime juice. Palm sugar may be a tricky thing to find, but it can be found in Asian grocery stores. If you must substitute it, just remember that palm sugar isn't as sweet as conventional sugars and it also provides a creaminess as well. I would substitute it with brown sugar if you cannot find it.
• Lime Juice: It will brighten up the flavors of the satay sauce, adding a refreshing sourness that balances the sweetness of the palm sugar. Use fresh lime juice from limes and not the bottled stuff for the best flavor.
• Fish Sauce: Fish sauce will add a robust, savory depth to your satay sauce.
• Birds Eye Chili: These chilies will give your satay sauce a fiery kick, but you can adjust the quantity according to your spice tolerance. Start with 2 and work your way up. I don't always have this on hand so I sometimes cheat and just use a chili hot sauce like sriracha in place of the chili peppers

How to Make Satay Sauce Recipe with Peanuts (Step by Step)

Making this incredible peanut sauce recipe at home is super easy and will give you great results every single time. Here's how to make it step by step:

Roasting the Peanuts

Let’s start by roasting the peanuts.  If your peanuts are already peeled, you can roast them directly in the pan. To do this, place them in a frying pan and roast until they turn a toasty brown hue. This process enhances their flavors by releasing the oils within them.

However, if you have purchased shelled peanuts, or skinned peanuts you’ll need to take an extra step. After shelling them, toast them with the skin on. After toasting, allow the peanuts to cool. The peanut skins will crack and the peanuts will shrink slightly so it is very easy to remove the skins by rubbing them between your palms or fingers to remove the skin.

After the peanuts have cooled, the next step is to crush them finely. You can use a mortar and pestle for this step. If you don’t own a mortar and pestle, don’t worry! You can achieve a similar result by giving them a quick pulse in a food processor, or by chopping them finely by hand. Remember to reserve 1-2 tablespoons of the crushed peanuts - these will be used later as a garnish.

Making the Sauce

Now that the peanuts are prepared, let’s move on to making the sauce. Begin by soaking the tamarind pulp in about 3-4 tablespoons of water for a few minutes, then strain out the seeds and skins. If you are using tamarind paste from a jar, you can skip this step and use it directly from the jar.

Next, chop up the galangal, garlic, lemongrass, and shallots, and place them in a food processor. Pulse the ingredients until they form an almost paste-like consistency. If you don’t have a food processor, finely chop these ingredients by hand. The finer the chop, the smoother your sauce will be.

Heat some oil in a pan over medium heat. Add the lemongrass, shallot, garlic, and galangal mixture, and sauté until browned. Next, add in the chopped bird’s eye chili, and continue to cook for a few more minutes.

Now, turn down the heat to low and add in the coconut milk, fish sauce, tamarind water, lime juice, and water. Stir these ingredients together until they’re well combined. Then, add in the palm sugar and your crushed roasted peanuts, and let the mixture simmer gently for the next 10-15 minutes.

If at any point you find the sauce too thick, feel free to add more water to thin it out. Finally, give the sauce a taste and adjust the flavor as needed. Everyone’s taste buds are different, and you may prefer your satay sauce to be more salty, sweet, or sour. You can tweak the flavor by adding more lime juice, sugar, or fish sauce until it is just right for you. 

Your Satay Sauce with Peanuts is ready to serve! This robust, flavorful sauce is not only versatile but also a delightful blend of Thai taste and texture. Enjoy! 

Serving Suggestions

• Easy Grilled Thai Chicken Skewers: This satay sauce with peanuts pairs excellently with grilled Thai chicken skewers. The complex flavors of the sauce compliment the smoky, grilled taste of the chicken, making it a meal to remember. Add a side of jasmine rice for a complete Thai experience.
• Chicken Satay Recipe with Peanut Sauce: Serve this satay sauce as a dip with chicken satay for a traditional Thai treat. The sauce’s rich, nutty flavor enhances the marinade of the chicken satay, creating a dish bursting with taste.
• Grilled Thai Curry Chicken Wings: Try this sauce as a marinade for grilled Thai curry chicken wings. The spicy, sweet and tangy elements of the sauce blend perfectly with the chicken wings, making it a hit at any gathering.
• Stir-fried Noodles: This satay sauce can also be tossed with stir-fried noodles. The peanuts and spices in the sauce add depth and texture to the noodles, transforming a simple dish into a real treat! 
• Tofu Satay: For a vegetarian option, serve this satay sauce with tofu satay. The tofu’s mild flavor allows the vibrant taste of the sauce to shine through, providing a satisfying meal for those avoiding meat.
• Fresh Salads: Add some of this delicious satay sauce with peanuts into your favorite salad or have it on the side with some fresh spring rolls, or your favorite stir fry. This sauce is super versatile and works great with just about everything!

Recipe Variation Ideas for Satay Sauce with Peanuts

How to Store Leftover Satay Sauce with Peanuts

Recipes To Use Up Leftover Tamarind Paste

More Thai Recipes You May Like

• Pad Thai
• Thai Basil Chicken (Pad Kra Pao)
• Tom Kha Gai (Thai Coconut Soup)
• Khao Soi 
• Thai Red Curry
• Pad Woon Sen (Thai Glass Noodle Stir Fry)
• Grilled Coconut Chicken Skewers
• Tom Yum Soup
• Thai Peanut Noodles

Did You Make This Recipe?

Recipe Card

Thai Satay Peanut Sauce (Made from Scratch with Peanuts)

An incredibly flavorful Thai satay peanut sauce made from scratch by roasting and crushing our own peanuts and cooking down shallots and spices.

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Course: Condiments, Dip, Sauce

Cuisine: Thai

Prep Time: 15 minutes minutes

Cook Time: 20 minutes minutes

Total Time: 35 minutes minutes

3 cups

5 from 7 votes

Made with ♡ by Joyce

Joyce's Recipe Notes

• Although galangal and ginger come from the same family they taste very different. Do not substitute the galangal for ginger if you don't have it. Omit the galangal from the recipe instead
• Everyone's preference is always different when it comes to peanut sauce. Tweak it until it's perfect for you. To make it more sour, use some lime juice. To make it more sweet, use some condensed milk. To make it more savoury, add some more fish sauce.
• Smooth or Chunky? This recipe will produces a hearty chunk sauce with peanut bits but if you enjoy a smoother sauce you can just throw it in the food processor and blitz it! ?
• If you’re using tamarind paste from a jar instead of tamarind pulp, make sure you are buying the ones from Thailand only. Tamarind paste from India is much stronger and potent and very sour, it will overpower the entire sauce.
• If your palm sugar is too hard, microwave it for a few seconds at a time before you cut it with a knife.
• If you can't find palm sugar, you can substitute it with light brown sugar.

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Ingredients

 

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• ▢ 1 cup peanuts (unsalted, skinless)
• ▢ 1 stalk lemongrass (approx. ¼ cup, finely chopped)
• ▢ 1 tablespoon galangal (approx. 3x3 cm)
• ▢ 1 tablespoon garlic (2 cloves)
• ▢ ¼ cup shallots (3 small shallots)
• ▢ 2-3 birds eye chili (finely chopped)
• ▢ 1 cup coconut milk
• ▢ ¼ cup palm sugar (or 3 tablespoons of light brown sugar)
• ▢ ¾ cup water (add more if you prefer a thinner sauce)
• ▢ 2-3 tablespoons fish sauce
• ▢ 1 tablespoon lime juice (approx. ½ lime)

Tamarind Pulp

• ▢ 2 teaspoon tamarind pulp (seeds and pulp removed. If you are using tamarind paste from a jar, use 3 tablespoons)
• ▢ 3-4 boiling water

Topping

• ▢ unsalted raw peanuts (roasted and finely crushed)

Instructions

 

Roast the Peanuts

• If you bought peanuts without the skin, place them in a frying pan over medium-low heat and give them a quick roast until they are toasty and brown. Remember to shake the pan every few minutes to them moving so that they don't burn. They take about 10 minutes.
• If you bought shelled peanuts, or peanuts with the skin on, shell them and toast them in a frying pan over medium-low heat for about 10 minutes. Shake the pan every few minutes to prevent them from burning. This takes about 10 minutes.

  Once the peanuts have finished roasting, let it cool. The skins should be cracked and the peanuts would have shrunk slightly which makes it easier to remove the skins by rubbing them between your palms or fingers.
  
• Once the peanuts have finished roasting, let them cool a bit.

  Then in a mortar and pestle crush the peanuts up finely.

  If you don’t have a mortar and pestle, you can pulse it in a food processor (pulse a few times until peanuts are in smaller pieces, do not blend it because that will make peanut butter.)

  Alternatively, you can also hand chop it finely.
• Reserve 1-2 tablespoons of the finely crushed peanuts as a topping

Prepare the Tamarind Pulp

• Soak 2 teaspoon tamarind pulp in a 3-4 tablespoons of boiling water for 15 to 30 minutes minutes and then strain out the seeds and skins.

  Save the tamarind water for the sauce, there should be about 3 tablespoons.

  If you are using tamarind paste from a jar, you can skip this step.
  

Making the Sauce

• Chop up the galangal, garlic, lemongrass and shallots and put them into a food processor and blitz it to it is almost a paste.

  If you don’t have a food processor you can chop them by hand but chop them up finely. The finer the chop the less chunks in the sauce.
• In a pan, add some oil onto medium heat and brown the lemongrass, shallot, garlic galangal mixture.
• Add in the chopped birds eye chili and continue to cook it in the pan for a few minutes.
• Turn down the stove to low heat and add in 1 cup coconut milk, 2-3 tablespoons fish sauce, tamarind water (or tamarind paste), 1 tablespoon lime juice, and ¾ cup water and stir until combined.
• Add ¼ cup palm sugar and crushed peanuts and continue to cook for 10-15 minutes
• If you find the sauce too thick, add some more water to thin it out.
• Taste it and adjust the flavour. Is it salty, sweet or sour enough for you? Everyone has a different preference on how they enjoy peanut sauce. Adjust accordingly by tweaking it with lime juice, sugar or fish sauce.
  

Nutrition

Serving: 1Cup | Calories: 499kcal | Carbohydrates: 29g | Protein: 14g | Fat: 40g | Saturated Fat: 18g | Sodium: 986mg | Potassium: 550mg | Fiber: 4g | Sugar: 14g | Vitamin C: 5mg | Calcium: 56mg | Iron: 4mg

*Nutritional information is calculated using online tools and is an estimate*

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