If you're going to call it satay, please include pulverised coriander seeds, turmeric, ginger, shallots and a small amount of palm sugar or brown sugar. Blend it all together (with as much red chillies as you wish) and use it as a marinade.
Cook a separate authentic peanut sauce (to serve together with the grilled chicken pieces) for 15 minutes on medium-low heat: 200g crushed or milled peanuts, 80g palm or brown sugar, 1/3 cup water, crushed red chillies and salt to taste. Add more water if necessary to get the sauce thickness that you prefer. It's worth the bit of extra work!
OMG!!!! this is what my kids lovingly refer to as "peanut butter chicken", and ask me all the time when I am going to make this again. Definitely one of my favorites. I do have to say though, that after the first time making this, I cut the chicken in strips, but do NOT put them on the skewers. Its just easier for me this way.