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Malaysian Satay Peanut Sauce

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Malaysian Satay Peanut Sauce







Cook Time

Cook Time

50 M



6 Servings
Grace Teo
Grace Teo   thegraceteo
Published on December 12, 2014

  Based on 3157 ratings  Watch Now


Peanut sauce is one of the many Asian dips that is really popular even in western countries. Unfortunately, their peanut sauce pales in comparison with the one which we Malaysians are familiar with. Peanut sauce has to be slightly spicy yet sweet with a subtle hint of sourness and a light touch of saltiness.

Other recipes add peanut butter to this sauce but it is a definite no-no in this Malaysian peanut sauce because it would otherwise not go such amazingly well with Satay grilled skewered meat.

This recipe has been tried and tested numerous times by viewers with very positive feedback. If you do not like the sauce to be too grainy, grind the peanuts into finer pieces. For your information, skinless peanuts are also sold in stores.

Just be mindful to constantly stir the sauce especially if you plan to double or triple the amount of ingredients used. This is to prevent the sauce from being burnt. Having the right proportion of ingredients will ensure a truly strong and flavourful taste.

This peanut sauce is certified delicious and is a must-try. My friends renamed this “Grace’s awesome Peanut Sauce” because of its delectable taste and has given it two thumbs up! Give it a shot and tell me what you think. You will not regret this for sure.

Malaysian Satay Peanut Sauce is also known as: Satay SauceKuah Kacang

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  • 300 grams peanuts
  • 4 lemongrass stalk(s)  
  • 3 garlic clove(s)
  • 2 shallots  
  • 3 centimetres galangal  
  • 8 chilli peppers (dried)  
  • 400 millilitres water
  • salt
  • 60 grams palm sugar (gula melaka)
  • 1 teaspoons tamarind paste

Steps to Prepare


Step 1:

Toast peanuts in a pan (without oil) until fragrant. Remove peanuts' skin by soaking them in a bowl of water. Then, blend/crush peanuts into a grainy texture and set aside.


Step 2:

Blend lemongrass, galangal, garlic and dried chillies. In a pan, heat some oil to fry shallots over medium heat. Once shallots begin to change colour, add the blended ingredients to the pan and sauté to cook until fragrant. (Indication: Oil will separate from chilli paste.)


Step 3:

Add blended/crushed peanuts, water and a pinch of salt. Mix well and increase the heat to allow the sauce to boil.


Step 4:

Once sauce boils, add gula Melaka (palm sugar) and allow it to simmer at medium to low heat. After 20 minutes, when sauce thickens, add tamarind paste. Add sugar to taste (optional).