Peel the shallot and chop it finely.
Heat the oil in a saucepan and sauté the shallot until translucent.
Trim the ends of the lemongrass and peel off the outer layer.
Chop the lemongrass as finely as you possibly can.
Sauté the lime leaves and lemongrass with the shallots.
Add fish sauce, peanut butter, and chili sauce.
Stir well.
Add the boiling water and stir until the sauce is smooth and creamy.
Add honey and let the sauce simmer for a few minutes.
If you have the time, let the sauce cool and sit for a bit so the flavors of the lime leaves and lemongrass can develop.
It can always be reheated.