Blend the chilies, shallot, garlic and shrimp paste together in blender and set aside.
Wok or deep-frying pan, add in some vegetable oil over medium heat. Add in the Ikan Bilis and fry till it is golden in color and crispy. Remove and set aside on paper towels to drain off excess oil.
In the same oil, deep fry peanuts until golden brown. Drain and set aside when done.
In another pan, heat some vegetable oil over medium heat. Add the blended spices to the mixture and stir well.
Cook until about 10 minutes, at which point it began to render the oil out of the paste. Deep red color. Add in tamarind paste, palm sugar, and salt. Taste and adjust for seasoning. Mix well anchovy crisps and toasted peanuts using the sambal mix.
Serve Sambal Ikan Bilis Hot with Steaming Rice or as an accompaniment.