XO Sauce (XO酱)

July 9, 2025

XO sauce © kvalifood.com

XO sauce was invented in Hong Kong in the 1980s - probably at the Peninsula Hotel - and is named after XO cognac as a status symbol for luxury. The sauce is made from expensive dried seafood (scallops and shrimp), Chinese cured ham, chilli and garlic, all slowly fried in oil to create a deeply umami-rich, mildly spicy condiment. The texture is oily with visible pieces, like a coarse marmalade. Used on noodles, rice, dumplings, in stir-fries and on fried vegetables - typically 1-2 tbsp per serving.

Ingredients

Yields ca. 400 ml finished sauce

Dried ingredients

100 g dried scallops (conpoy/干贝)
100 g dried shrimp (虾米)
75 g Jinhua ham (金华火腿, or prosciutto)

Aromatics

6 shallots (ca. 150 g), finely chopped
8 cloves garlic (ca. 40 g), finely chopped
4 fresh red chillies, finely chopped
1 tbsp dried chilli flakes (Chinese or Korean gochugaru)

Liquids and seasonings

500 ml neutral oil (rapeseed or peanut)
3 tbsp Shaoxing wine (绍兴酒)
1½ tbsp oyster sauce
1 tbsp dark soy sauce
1 tbsp sugar

Directions

Rinse scallops and shrimp. Place them in separate bowls with warm water and 1 tbsp Shaoxing wine in each. Soak for at least 2 hours, preferably overnight in the fridge. Save the liquid.

Drain scallops and shrimp. Remove any hard muscles from the scallops. Pulse scallops in a food processor 5-6 times into coarse threads - not paste. Pulse shrimp separately 6-8 times into coarse pieces. Chop the ham finely with a knife.

Chop shallots, garlic and fresh chillies finely. A food processor can be used, but be careful not to make puree - coarse pieces are the goal.

Heat 500 ml oil in a heavy-bottomed pot over low heat (about 230°F/110°C - a wooden skewer should bubble gently). Add shallots and fry 10-12 minutes, stirring, until lightly golden. Add garlic and fry 8-10 minutes until golden. Add fresh chillies and fry 3 minutes. Strain everything from the oil, keeping oil and aromatics separate.

Pour the oil back into the pot. Heat to 230°F (110°C). Add scallops and fry 8-10 minutes, stirring regularly. Add shrimp and fry 5 minutes. Add ham and fry 5 minutes. Everything should be golden brown but not dark.

Add the fried aromatics back. Pour in the remaining 2 tbsp Shaoxing wine along with oyster sauce, dark soy sauce, sugar and 2 tbsp of the soaking liquid. Stir well. Add dried chilli flakes. Cook over low heat 5 minutes, stirring, until the liquid is reduced and the sauce is dark and oily.

Remove from heat. Let cool completely before pouring into clean jars with tight-fitting lids. The ingredients must be covered by oil. Store in the fridge.

Notes

Shelf life: 1-2 months in the fridge. Always use a clean spoon. The ingredients must be covered by oil.
Wait 2-3 days before using for full flavour development.
Temperature control is the most important thing. Too high heat burns the dried ingredients and makes the sauce bitter. Keep the temperature low and be patient.
Jinhua ham vs. prosciutto: Jinhua ham (or Yunnan ham) is ideal. Prosciutto is the closest substitute - both are dried, salted pork. Avoid smoked ham.
Scaling up: The recipe can be doubled or tripled - the sauce keeps well and is worth making in larger quantities.