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Crush the peanuts with mortar and pestle or use a food processor to ground the peanuts. Set aside.
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In a small bowl, add the tamarind pulps plus 1/4 cup warm water. Set aside for 15 mins. Squeeze and extract the juice from the tamarind pulps and discard. Keep the tamarind juice.
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Chop the Spice Paste ingredients coarsely, transfer to a food processor and blend until very fine. Add a few tablespoons of water to help blending.
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In a sauce pan, heat the oil on medium heat and add the spice paste.
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Add the remaining two strips of lemongrass to the spice paste. Cook the spice paste until it becomes aromatic and smell spicy.
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Add the ground peanuts, water, tamarind juice, salt, sugar, coriander powder and sweet soy sauce. Stir to combine well.
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Turn the heat to medium-low heat, stir continuously for about 5-10 minutes or until the peanut sauce thickens to your desired consistency. The oil and the peanut sauce should separate when it's done.
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Let cool at room temperature and serve the peanut sauce with satay.