In a small pan over medium heat, add turmeric powder, chili powder, ground cumin and coriander seeds. Cook until fragrant, about 1 minute.
Turn the heat off and transfer the spices to a spice grinder, small blender or pestle and mortar. Add the remaining ingredients for the paste and blend.
In a small pot over medium heat, add coconut milk and paste and whisk until the past has dissolved. Heat the coconut milk until hot (but not bubbling) and transfer to a bowl.
Serve the Thai peanut sauce with vegetables and skewers or use it as a sauce for a stir fry. It’s delicious over rice!
Notes
This Thai peanut sauce will keep refrigerated for up to 3 days.