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Malaysian Satay Peanut Sauce

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Malaysian Satay Peanut Sauce



Total Time
Total Time
Prep 20 M / Cook 50 M

6 Servings

Grace Teo
Grace Teo   thegraceteo
Published on December 12, 2014

  Based on 3826 ratings  Watch Now


300 g
lemongrass stalk(s)  
3 cm
garlic clove(s)
chilli peppers (dried)  
3 tbsp
400 ml
0.25 tsp
60 g
palm sugar (gula melaka)
1 tsp
tamarind paste


Satay sauce which is also known as peanut sauce is a popular dip or gravy worldwide. Often accompanied with grilled meat (satay), the very mildly spicy yet sweet with a subtle hint of sourness sauce goes really well with the meat. With freshly pounded peanuts in the sauce, it clings easily on to the marinated grilled meat. This delicious satay sauce cannot be compared with peanut sauces which uses peanut butter in it! The best satay peanut sauce must have a good balance of all taste - sweet, spicy, sour and savoury.

This recipe had been tried and tested numerous times by viewers with very positive feedback.

What is Malaysian satay sauce?

Since satay is served in many other Southeast Asian countries, it is understandable to have many variations of satay and peanut sauce. Malaysian satay sauce do not use coconut milk or other ingredients such as soy sauce or fish sauce.

Tips to remove the skin of peanuts

As shown in the video, the peanuts can be soaked in water to soften its skin. That way, it would be easier to remove the skin. You can also fry the peanuts in oil. With a clean kitchen towel, wrap the peanuts and rub them among each other. The skin will fall off during the rubbing process. To save the hassle, roasted peanuts without skin can also be used.

Should I double the amount to make more?

Yes! Just be mindful to constantly stir the sauce especially if you plan to double or triple the amount of ingredients. This is to prevent the sauce from being burned. Having the right proportion of ingredients would ensure a truly amazing, delicious peanut sauce.

How to store satay sauce?

Satay sauce can be made in advanced and refrigerated up to 5 days. Otherwise, store it in the freezer up to 6 months. Thaw the peanut sauce before using. You can either steam or microwave the peanut sauce shortly before serving.

This peanut sauce is certified delicious and is a must-try. My friends renamed this recipe, “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 can only love it, for sure.

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



Step 1/4

  • 300 g peanuts

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 2/4

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


Step 3/4

  • 400 ml water
  • 0.25 tsp salt

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


Step 4/4

  • 60 g palm sugar (gula melaka)
  • 1 tsp tamarind paste

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

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