Preparation / Directions:
Place steak in freezer 30 minutes to firm; slice into 1/4" thick strips. In shallow glass dish, combine soy sauce, sherry, sesame oil, onion, garlic, sugar, ginger and 1/2 tsp. of the red pepper flakes. Add beef strips; turn to coat with marinade. Cover and refrigerate 2 to 4 hours.
Soak twenty-four 8" bamboo skewers in water for 20 minutes.
Drain beef; reserve 2 Tbs. marinade.
Thread beef strips, accordion-style, on skewers. Meanwhile, in small saucepan, combine reserved marinade, remaining 1/2 tsp. red pepper flakes, the peanut butter and water. Heat over low heat 8 to 10 minutes or until sauce is thick and warm (add more water if necessary).
Grill kabobs, on uncovered grill, over medium-hot briquettes 2 minutes. Turn and cook 2 minutes longer. Serve beef strips with sauce.
Assembled kabobs may be refrigerated, covered, 1 to 2 hours before grilling.