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In a small pot, heat oil on medium-high. Add garlic and saute until it begins to turn color (about 30 seconds).
Add water, hoisin sauce, and peanut butter. Whisk until smooth. Simmer on low for about one minute then remove from heat. The sauce will thicken as it cools.
Transfer to individual sauce bowls, top with a sprinkle of toasted peanuts and a drizzle of Sriracha chili sauce. Serve on the side of your favorite spring/summer rolls.