Pour the boiling water over the coconut. Leave for 15 minutes, then squeeze out. Measure out 1 1/4 cups of the liquid and reserve it. Mix the rest with the marinade ingredients.
Cut the chicken breasts and thighs into small pieces. Marinate the chicken overnight in the refrigerator or at least for several hours. Remove from marinade and thread onto wood or metal skewers.
To make the sauce, toast the peanuts in a hot oven for 2 or 3 minutes. If your peanuts have the skins on rub them off using a dish towel and then grind the nuts for just a few seconds. Do not reduce the nuts to a powder - this would spoil the consistency of the sauce. Grind or pound the onions and garlic and grind or pound the macadamia nuts and lemon grass.
Fry the onion mixture in hot oil, then add the nut and lemon grass paste. Reduce the heat, then add the chili powder and cook for 2 minutes. Add the reserved coconut milk, stirring all the time while. Allow the mixture to come to a boil, then reduce the heat and add tamarind water, sugar, salt to taste and peanuts. Cook for 2 - 3 minutes and stir frequently until the sauce thickens.
Broil the chicken skewers for 4 minutes each side under a high heat, then allow to cook for a further 4 minutes each side under a medium heat.
Serve with the satay sauce garnished with the chopped green onion.
Notes
To make the Tamarind water:
Take 1 tablespoon tamarind pulp or dried tamarind and soak in 4 tablespoons hot water. When it is hydrated, squeezed it out to remove the excess water. OR... Simply buy tamarind sauce. That's what I do.