Prahok, or fermented fish paste, is a standard ingredient in Cambodian cuisine. It has a distinctive, strong flavor, so no matter how you use prahok, a little goes a long way. Prahok sauce, using prahok as the sole ingredient or in combination with a variety of ingredients, is a popular cooking ingredient, a dipping sauce and a common dinner-table condiment.
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Preheat a dry saucepan over medium high heat for one to two minutes.
Add the olive oil, minced garlic and lemon grass. Stir-fry for one minute, until the minced garlic turns a light golden brown.
Pour in 1 cup water, and bring it to a full boil.
Stir in the fish paste. Continue to stir until the paste dissolves, then remove the saucepan from your stove.
Stir in the lime juice, sugar and chili paste.
Pour the prahok sauce into a serving bowl, and top it with the red chili peppers and peanuts.