In a stone mortar with pestle, or in a food processor, grind the peanuts into a coarse meal.
In a small pot over medium heat, reduce 1/4 cup of the coconut milk by about half. Add curry paste and cook over medium low heat, stirring constantly, for about 2 minutes until it is very thick. If it thickens too quickly, add a splash of coconut milk to help loosen it up.
Stir in the rest of the coconut milk, ground peanuts, fish sauce, palm sugar and tamarind juice.
Simmer for a few more minutes until it has thickened into a dip consistency, stirring frequently to prevent the bottom from scorching.
Taste and adjust seasoning with more sugar, fish sauce, and tamarind juice as needed.