10 ozs. roasted peanuts (285g; about 1 1/2 cups)
1/4 cup (60ml) vegetable or canola oil, divided
1 oz (30g) tamarind pulp, soaked and strained (see note), or 2 teaspoons (10ml) tamarind concentrate
2 Tbs (30ml) kecap manis or fish sauce
2 Tbs rice wine vinegar
Water, as necessary
Sugar, to taste
Crushed red pepper to taste (optional)
Coarsely blend or process peanuts or alternatively use a mortar and pestle.
Heat 2 tablespoons (30ml) oil in a medium skillet over medium-high heat until shimmering. Add remaining 1/3 of spice paste and cook, stirring, until fragrant, about 1 minute.
If using pulp, soak and strain tamarind pulp by combining 2 tablespoons pulp with 2 tablespoons warm water and massage with your fingertips until softened. Press through a fine-mesh strainer. Keep the juice and discard the remaining pulp.
Add peanuts, tamarind juice, remaining oil, kecap manis or fish sauce, and 1/2 cup water. Stir to combine. Once liquid comes to a simmer and turns creamy, adjust consistency with rice wine vinegar and more water as necessary to produce a creamy sauce that just barely flows. Season to taste with a little sugar if desired. Leftover sauce can be stored for several weeks in a covered container in the refrigerator.