Soak peanuts in water for 2 minutes. Then drain and pat dry.
While waiting for the peanuts to be soaked, cut dried chilli into pieces with a pair of scissors (keep the yellow seeds).
Fry the peanuts
Pour peanuts into a cold wok / frying pan, then pour in oil. Turn on the heat to medium-low.
Frying the peanuts for about 13 minutes (see note 3). Stir from time to time. They are done when the colour of their skin darkens . Taste one if you are not sure. They shouldn’t have any raw taste yet they shouldn’t have a burnt taste either .
Transfer the peanuts to a plate lined with kitchen paper (to soak up excess oil).
Season the peanuts
Leave enough oil to cover the bottom of the wok (discard the rest). When the wok cools down, stir in dried chilli, Sichuan peppercorn and bay leaves. Fry over medium-low heat until fragrant (do not burn).
Turn off the heat. Add in fried peanuts. Sprinkle with salt, sugar and ground Sichuan pepper. Shake around the wok, then dish out.
Serve & store
Leave to cool completely. Enjoy immediately or store in an air-tight container for later consumption. The flavour will be more intense after a day or two.
Notes
1. For nutritional reasons I prefer peanuts with the skin on. You may use skinless peanuts. If so, please skip step 1 (soaking the peanuts).2. You can use either green Sichuan peppercorn or regular red Sichuan peppercorn. To learn more about this unique spice, please read my guide : Sichuan Pepper (花椒): Your Questions Answered.3. Frying time may vary depending on the size of the peanuts, as well as the power of the heat. Adjust accordingly.