Homemade peanut dipping sauce

By now, many have figured out the short cut in making peanut sauce. It's really not hard especially if you have peanut butter in your pantry. However, in my case, peanut butter is not regularly featured on my grocery list as I'm the only one who eats it and that's dangerous! :D
One day a dish really needed this sauce to make it complete, so I thought why not give it a go with  toasted peanuts in packet that I've got on hand. The recipe still needs tweaking but the result was very promising !

Homemade Peanut dipping sauce

Ingredients (estimate only)
Peanuts, toasted, it depend on how "peanutty" you want it
oil for cooking
onion, minced
dried red chillies, to taste
anchovy paste, to taste
salt and sugar, to taste
water, as needed

Method
1) Heat oil in sauce pan. Sauté minced onion until translucent. Add in the anchovy paste, dried chillies and peanuts. Stir it a bit. add water , not too much. you can adjust later. cook until peanuts are blendable.
2) Remove from sauce pan and blend to the preferred texture (smooth or chunky) , pour in back to pan . At this point, season with salt and sugar, also adjust water, if needed.
3) Serve room temperature or hot.