Chop the chili peppers and garlic.
Crush the peanuts into small pieces.
Heat cooking oil in a pan and sauté the garlic.
Add the chili peppers and stir-fry together.
Add the peanuts and sauté to bring out their aroma.
Add soy sauce, sugar, and vinegar, and mix well.
Pour in water and simmer over low heat until thickened.