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.