Place chiles in a bowl, and cover with hot water. Let stand for 30 minutes or until tender. Drain. Combine chiles, 1/2 cup peanuts, and next 5 ingredients (through shallot) in a food processor. Process until finely chopped.
Heat a medium saucepan over medium-high heat. Add oil to pan, and swirl to coat. Add chile mixture; cook for 1 minute, stirring constantly. Add 3/4 cup water and remaining ingredients; bring to a boil. Reduce heat; simmer for 4 minutes, stirring occasionally. Let stand for 30 minutes.
Wine note: Beef satay is a tasty wine problem: All those heady Southeast Asian aromatics--tamarind, coriander, lemongrass--suggest an aromatic white match. But underneath the spice is beef, so go with pink! Look to a bone-dry, crisp, fruity rosé from California that's full of spicy red fruit flavors. Try Zaca Mesa 2009 "Z Gris" from Santa Ynez Valley ($16). Tart cherry and sweet, wild strawberry flavors are surrounded by aromatic spices, lime, and herbs. --Sara Schneider