Potatoes with Satay Sauce

I usually refer to this as "that peanut butter potato salad" but that doesn't sound very appetizing, does it? It is though, I promise. This recipe is from Lisa's friend Ronnie.

5 or 6 potatoes, boiled and cut into chunks
1 1/2 tbsp butter
1 onion, peeled and diced
1/2 tsp chili powder
pepper to taste
1/4 cup sugar
5 tbsp peanut butter
1/4 cup white vinegar
2 tsp soy sauce
1 cup water

Over low heat, melt butter. Add onion and fry until tender. Add remaining ingredients except potatoes and simmer 10-12 minutes. Pour sauce over potatoes. Refrigerate before serving.