Prepare the syrup: Add the full-fat coconut milk and sugar to a small saucepan. Heat over medium heat, stirring regularly until it comes to a boil. Remove from heat, and stir in the liquid smoke. Let cool a little bit while you prepare the flour coating.
Make the flour coating: To a medium size mixing bowl, add the flour, cornstarch, onion powder, salt, and garlic powder. Whisk until combined.
Coat the peanuts: Add the raw peanuts to a large mixing bowl. Pour about one tablespoon of the syrup over the peanuts and shake the bowl to coat. Next, sprinkle a couple of tablespoons of the flour mixture over the peanuts and shake again to coat the peanuts evenly. (I cover the mixing bowl with a plastic film while shaking ir to prevent peanuts from jumping out of it.)
Repeat the same process 4-5 times: add syrup and shake to coat. Then add flour and shake again. The peanuts will have a thick flour coating once you have used up all the syrup and flour.
Fry the peanuts: Heat the oil in a deep saucepan or skillet over low-medium heat. Once hot, add half of the peanuts and fry for 6-8 minutes, or until golden brown. Note: do not heat over medium-high heat, otherwise the coating will brown too quickly, and the peanuts will not cook inside.
Remove the peanuts from the oil using a slotted spoon and transfer to a plate lined with a kitchen paper towel to remove excess oil. Repeat with the remaining peanuts.
Finally, sprinkle smoked paprika and chili over the fried peanuts and stir to coat. Let cool completely and enjoy!
Crunchy peanuts will keep for up to 1 week at room temperature in an airtight container.
Notes
Use raw peanuts WITH the skin on. You want to start with raw peanuts, which will develop their nuttiness during the frying step. Raw peanuts must have their skin on for the coating to stick to them.
Fry the peanuts over low-medium heat. Frying them over high heat would cause the coating to brown too quickly, and the peanuts would stay raw on the inside.
Do not over-fry the peanuts. As soon as the coating is golden brown, remove it from the oil. Otherwise, it will get a bitter flavor.
Tweak the flavors to your liking! For a sweet version, simply omit the liquid smoke, garlic, and onion powder. You can also add spices like cinnamon to the flour coating or vanilla extract to the syrup.
Keep them in an airtight container. To keep their crunchiness, store the peanuts in an airtight container at room temperature.