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In a medium sized bowl, whisk all the ingredients together until smooth. Start with just 2 tablespoons of coconut milk or water, and add more as needed to thin the sauce.
If serving as a dip, sprinkle with crushed peanuts. The sauce also goes well with cooked vegetables, noodles, buddha bowls, fresh spring rolls, tofu and salads.
Store in a covered container in the refrigerator for up to 1 week. It can also be frozen in a freezer safe container.