Peel and remove the skin of roasted peanuts and grind it to a smooth paste adding milk.
In a pan heat oil and add chopped onions and garlic.
Saute for a minute or two until it changes colour.
Add in the ground peanut, 1/4 cup of water, red chilly, turmeric and salt.
Bring it to boil.
Cover and cook on low flame until the sauce thickens.
Add chopped coriander leaves and remove from flame.
Serve it as a side dish with meat or vegetables.