Prepare the Sambal Paste: Blend shallots, garlic, red chilies, bird's eye chilies, and toasted belacan with a splash of water until a fine paste is formed.
Sauté the Sambal Paste: Heat vegetable oil in a wok or pan over medium heat. Add the blended sambal paste and sauté, stirring constantly, until fragrant and the oil separates, about 10-15 minutes.
Add Tamarind and Seasoning: While the sambal paste is cooking, mix the tamarind paste with 3 tbsp warm water and strain to get smooth tamarind juice. Add this tamarind juice, sugar, and salt to the sautéed sambal paste. Stir well and simmer for another 5 minutes. If too thick, add a bit more water.
Cook the Prawns: Add the prawns to the sambal mixture. Cook, stirring occasionally, until the prawns turn pink and are cooked through, about 3-5 minutes. Be careful not to overcook them.
Serve: Serve the Sambal Udang immediately with steamed white rice.
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