Heat the Oil and Coconut Cream Add a little oil to a saucepan over low–medium heat. Pour in the coconut cream, bring to a gentle boil, then reduce the heat to a simmer. Cook until the coconut cream separates and thickens slightly. Stir frequently to prevent burning.
Fry the Red Curry Paste. Once the coconut cream has split, add the red curry paste. Cook for 2–3 minutes, stirring constantly, until fragrant and slightly darkened. You’ll know it’s ready when the raw aroma is gone and the paste smells rich and complex.
Add the Seasonings. Stir in the palm sugar and fish sauce, followed by the tamarind water. Bring the mixture back to a gentle boil and simmer until the palm sugar has completely dissolved.
Incorporate the Peanuts. Add the crushed peanuts to the sauce. Return to the boil briefly, then reduce the heat to low. Simmer for a few minutes until the sauce thickens to your desired consistency. Stir often to avoid sticking or burning.
Finish and Store. Taste and adjust seasoning if needed — more fish sauce for saltiness, more tamarind for tang, or more palm sugar for sweetness. Serve warm with satay skewers. The sauce can be made ahead and stored in the refrigerator for up to one week. Reheat gently over very low heat, adding a splash of water if it becomes too thick.