To make the sauce, heat the oil in a pan or wok and stir fry the peanuts until golden. Place in a food processor and blend until smooth.
Fry the shallot, garlic and shrimp paste for a few seconds. Add the chopped chilli, the chilli powder, sugar, soy and water. Bring to the boil.
Add the blended peanuts and simmer for 8-10 minutes until thickened. Add the lemon juice and salt, to taste, if required.
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