Combine water, soy sauce and coconut milk together and soak the skewers in the mixture for 2-4 hours. Use a plastic-wrapped weight to keep the skewers submerged in the mixture.
Thread chicken on to the soaked skewers, leaving a small portion of the skewer empty so it can be picked up after cooking.
Combine pineapple juice, soy sauce, garlic, sesame oil and chili sauce.
Pour marinade over the chicken skewers and allow to soak for 3-4 hours. The chicken should be refrigerated while marinating.
Drain the marinated skewers and pat dry with a paper towel. Take small squares of aluminum foil and wrap the exposed wooden skewer. Using a pastry brush, coat chicken skewers with the peanut oil.
Prepare the grill. Cook the skewers over direct high heat for 5-7 minutes, turning once while cooking. Remove the foil from the ends of the skewers and arrange on a serving dish. Drizzle with dipping sauce, or serve it on the side.
In addition to the chicken skewers, this can be used in a cold pasta salad with fresh Asian vegetables or a sautéed shrimp pasta with garlic and snow peas.
In a skillet heat 1 Tbl of the peanut oil and sauté the peanuts to golden brown (approximately 4 to 6 minutes). Drain peanuts on paper towels.
Heat the remaining peanut oil and cook shallots, ginger, garlic, and jalapeños over low heat 4-5 minutes. Add the coconut milk and vinegar and simmer slowly 5 minutes.
Place peanuts into the simmering liquid and continue to cook 5 minutes. Remove from heat and allow to cool 10 minutes.
Transfer mixture to a blender and puree until smooth. Continue to blend, adding in remaining ingredients (If the sauce is too thick, add bit more warm water).
The sauce may be made several days in advance. Store in an airtight container in the refrigerator. Best when served at room temperature.