Ingredients:

  Amount  Measure       Ingredient -- Preparation Method
--------  ------------  --------------------------------
   1      cup           roasted unsalted peanuts
   2      stalks        lemongrass
  16                    dried chillies*
   1      inch          fresh ginger
   1      inch          fresh galangal -- (laos root),
                        -- optional
   6                    shallots *or*
   1      medium        onion
   3      cloves        garlic
                        sugar to taste -- (palm sugar is best)
   1      tablespoon    tamarind soaked & diluted with
     3/4  cup           hot water
   1      tablespoon    fennel seed
   1 1/2  cups          coconut milk or cows milk
   2      tablespoons   peanut/corn oil

Preparation:

*seed and soak dried peppers in hot water for 15 mins. First, chop peanuts (or use a food processor) into tiny chunks as tiny as the peanuts in your chunky peanut butter, but not too fine. Then, in a blender or food processor blend chillies, shallots, garlic, ginger, galangal, lemongrass, and fennel seed. Blend until it forms a paste. Heat oil in a pot. When oil is heated, put the blended paste in. Cook for 5 to 10 minutes, stirring continously. Then, put in the roasted peanuts and the tamarind with its water. Cook until the mixture boils. Then, put in the coconut milk, sugar and salt. Simmer for another 10 to 15 minutes. Enjoy! If the sauce is too thick for your liking, add more coconut milk or water.