Pound the peanuts into a coarse paste using a pestle and mortar. Alternatively, you can whizz the in a processor, just make sure it's not too fine.
reduce 150 ml of the coconut milk over a medium heat until the oil starts to separate. (don't worry if it doesn't do this. Some milk is processed not to split)
Add the curry paste and keep it moving so it doesn't burn
After a few minutes it will dry up and the oil from the coconut will start to separate from the paste
Once it's dried up add the rest of the coconut milk, palm sugar and the soy sauce let it cook for a minute or so
Add the peanuts cook for a few more minutes until thick. The sauce will thicken as it cools so don't be tempted to reduce it too much. If it's too think you can loosen it with a little water or coconut milk later.
Once the heat is off and it's at the right consistency, add the lime juice. Taste to see if you need more sugar or soy.
It's now ready for serving with the satay skewers
If you don't use it all this keeps really well in the fridge for a couple of weeks in a sealed container or months in the freezer.