Place peanuts in a food processor until crushed.  Be careful not to puree them.

Place the peanut oil in a medium saucepan over medium heat; add the curry paste and whisk for 30 seconds.  Whisk in the sugar and coconut milk and cook over medium-low heat, whisking, until smooth and thick, about 5 minutes.  Do not boil.  Add the crushed peanuts.

Add the soy sauce, lime juice and whisk in wasabi powder.  Taste and add more sugar, soy, or lime if necessary.  Cool sauce.