Steps:
- Heat peanuts in a 12″ skillet over medium heat; cook, stirring, until toasted, about 10 minutes. Transfer to a food processor and let cool; reserve skillet. Process until finely ground. Add sugar, shrimp paste, garlic, and chiles; process until very finely ground. Transfer paste to skillet and stir in coconut milk. Heat over medium heat, and cook, stirring, until oil begins to separate from paste, about 6 minutes. Stir in vinegar, salt, and ¾ cup water; cook, stirring, until the consistency of pea soup, about 4 minutes. Let cool.
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