Place all ingredients in a blender or food processor. Blend or process until sauce is smooth. If you prefer a runnier peanut sauce, add a little more water or coconut milk.
Do a taste test, adding more fish sauce (or soy sauce) if not salty enough, or more cayenne if not spicy enough. If too salty, add a squeeze of fresh lime juice. If you'd prefer it sweeter, add a little more sugar.
Serve warm or at room temperature with my Thai Chicken Satay, as a dip with fresh veggies, with fresh spring rolls, or other Asian finger foods. Or combine with noodles to create a Thai-style noodle dish or cold noodle salad. Enjoy!
Note: This sauce tends to thicken as it sits - just add a little water or coconut milk to thin it out, as needed. Otherwise it stores well if kept covered in the refrigerator (keep up to 2 weeks; freeze thereafter).
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