Sambal Bajak (indonesian Fried Red pepper Sauce)

To prepare in a mortar: Pound nuts to a coarse paste. Mince chilies, onion, and garlic and add to mortar with shrimp paste and sugar. Pound mixture to a coarse paste. To prepare in a food processor: Combine macadamia nuts, chilies, onion, garlic, shrimp paste, and sugar, and process to a coarse paste. Add 1 or 2 Tbsp of water if necessary to facilitate blending. In a small skillet or saucepan, heat oil over medium heat. Add chili paste and salam leaf and cook, stirring until fragrant. Add the water and continue cooking until water has evaporated and oil begins to separate. Serve warm or at room temperature, or store in a tightly covered jar in the refrigerator.