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Step 1
Optionally, remove seeds and membranes of chillies to reduce the spiciness. You may soak the dried chilli to ease seeds and membranes removal process. Blend garlic, fresh/dried chillies and half of the anchovies.
Step 2
Sauté the remaining anchovies until crispy over medium heat. Remove them from pan. Add the blended ingredients and stir-fry until it changes to a darker shade of red.
Step 3
Add sliced shallots and water. Stir well and cook for about 3-4 minutes over medium heat. Add coconut milk and tamarind paste. Continue cooking for about 4 minutes. If sambal is too dry, add more water. If it is too watery, continue cooking until reduced to your desired consistency. Add salt and sugar to taste. Turn off the stove. Add the fried anchovies. Mix well before serving. Optionally, discard excess oil.