In a large skillet, heat olive oil over medium to medium-high heat. Saute onion 2 minutes or until lightly browned and fragrant.
Add in red bell pepper, butternut squash noodles and, a little salt and pepper. Continually stir for the first minute to coat with residual oil in the pan. Cook another two minutes. Stir in garlic and cook until fragrant.
While squash noodles cook, whisk ingredients for sauce together in a small bowl.
Pour sauce over noodles in the hot pan and stir to coat noodles in the sauce as it begins to thicken. Continue cooking until butternut squash noodles are cooked to your liking.
Remove from heat and sprinkle with scallions, cilantro, and peanuts. Serve immediately.