Saute onion in oil in a 1 1/2 quart pot for 5 to 8 minutes until golden. Add spices and cook, stirring, for 1 minute. Add water, salt, and parsnips, bring to a boil, cover, and simmer over low heat for 20 to 30 minutes until vegetable is tender but not mushy. Sauce will become quite thick.
Garnish with pepper strips and peanuts before serving.
