Dry-fry peanuts in a pan without oil until fragrant, then rub off the skins.
Grind the peanuts into a fine powder and mince the red chili peppers.
Pour the peanuts, sesame seeds, red chili peppers, and dry yellow soybean paste into a pot and stir-fry. (This step is to evaporate some of the moisture from the fresh chili peppers.)
Meanwhile, in a separate pot, pour in sesame oil and sauté Sichuan peppercorns until fragrant to make Sichuan peppercorn oil (remove the peppercorns, keeping only the oil).
When the chili sauce in the pot has reduced significantly in volume, add the sesame oil and the remaining seasonings (add salt last), and simmer briefly.