Blend dried red chilies, fresh red chilies, shallots, garlic, ginger, lemongrass, galangal, fresh turmeric, and belacan into a smooth paste using a food processor or mortar and pestle. Add a little water if needed to help blend.
Heat cooking oil in a wok or pan over medium heat. Add the blended sambal paste and sauté for 10-15 minutes until fragrant and the oil separates from the paste.
Add sliced onion and kaffir lime leaves to the sautéed paste. Stir in tamarind paste, sugar, and salt. Continue to cook for another 5 minutes, stirring occasionally.
Add the cleaned squid and tomato wedges to the sambal. Pour in water. Stir everything together and cook for 2-3 minutes until the squid is just cooked and tender. Be careful not to overcook, as squid can become tough.
Remove from heat and serve hot with steamed white rice.
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