Start by getting a small sauce pot on medium-low heat. Add in the palm sugar, tamarind paste, fish sauce, and water. Whisk to break down the tamarind paste.

Cook the sauce for about 5 minutes, whisking along the way. You want that tamarind pulp to breakdown. It should be good after 5 minutes, but you can take it up to 10 minutes if necessary.

Pour the sauce into a serving container, add in the chili powder, stir, and let it cool.