In a bowl, combine all the meatball ingredients. Using your hand or spoon, mix ingredients until well combined. Form into 15 equally sized balls. Set aside.
In a skillet, heat oil over medium-high heat. Add meatballs to skillet and cook for about 5-10 minutes until golden brown, turning often. Remove browned meatballs from skillet and set aside.
In the same skillet, add the minced garlic and ginger. Cook for about 30-60 seconds. Reduce heat to medium. Add coconut milk, peanut butter, tomato paste, water and pepper flakes. Stir until ingredients are well combined. Season with salt and pepper. Add more water if sauce seems too thick. (Note: If your sauce seems clumpy or curdled don’t worry. Just pulse it a few times in the blender or food processor.)
Return meatballs to pan. Cover and cook for another 5-10 minutes until meatballs are fully cooked. Stir in lime juice. Garnish with cilantro. Serve warm.