Prepare the chicken: Cut the chicken thighs into 2cm cubes. Soak the wooden skewers in water for at least 30 minutes to prevent them from burning on the grill.
Make the chicken marinade paste: In a blender or food processor, combine shallots, garlic, galangal, fresh turmeric, coriander powder, cumin powder, brown sugar, 1 tbsp tamarind paste, 2 tbsp sweet soy sauce, 1 tsp salt, 0.5 tsp white pepper, and 2 tbsp cooking oil. Blend until a smooth paste is formed.
Marinate the chicken: In a bowl, combine the diced chicken with the marinade paste. Mix well, ensuring all chicken pieces are coated. Cover and refrigerate for at least 30 minutes, or up to 2 hours for best flavor.
Skewer the chicken: Thread the marinated chicken pieces onto the soaked wooden skewers. Try to pack them evenly but not too tightly.
Prepare the peanut sauce: In a blender or food processor, combine roasted peanuts, 30g shallots (from total 80g), 2 cloves garlic (from total 5 cloves), red chilies, and candlenuts. Blend until a coarse paste forms, adding a little water if needed.
Cook the peanut sauce: Heat the remaining cooking oil (2 tbsp) in a pan over medium heat. Sauté the peanut paste until fragrant. Add kaffir lime leaves, coconut milk, remaining sweet soy sauce (2 tbsp), remaining tamarind paste (1 tbsp), remaining brown sugar (1 tbsp), remaining salt (0.5 tsp), and water. Bring to a simmer and cook, stirring occasionally, until the sauce thickens to your desired consistency. Remove kaffir lime leaves.
Grill the sate: Preheat a grill (charcoal or gas) to medium-high heat. Lightly brush the skewered chicken with extra cooking oil or any leftover marinade. Grill for 12-15 minutes, turning occasionally, until the chicken is cooked through and has nice char marks. You can also baste the sate with more sweet soy sauce during grilling for extra flavor and glaze.
Serve: Arrange the grilled chicken sate on a platter. Serve immediately with the warm peanut sauce, fresh lime wedges, and thinly sliced red onion. Optionally, serve with rice cakes (ketupat or lontong).
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