Prepare the Chilies: Begin by draining the soaked red chilies, ensuring they are thoroughly dried. Heat a heavy-bottomed pan over medium heat and dry-roast the chilies until they become fragrant, stirring frequently to prevent burning. Remove from heat and set aside to cool.

Roast Shallots and Garlic: In the same pan used for the chilies, dry-roast the chopped shallots and minced garlic until they turn golden brown and emit a rich, aromatic fragrance. This step enhances their natural sweetness and depth of flavor. Remove from the pan and set aside.

Combine Ingredients: Transfer the cooled roasted chilies, shallots, and garlic into a food processor or blender. Add shrimp paste to the mixture. Blend on high until a smooth paste forms, scraping down the sides as needed to ensure even blending.

Cook the Paste: Heat vegetable oil in a clean pan over medium heat. Add the blended chili paste mixture and fry until it becomes aromatic, stirring constantly to prevent burning. This step helps release the flavors and aromas of the ingredients.

Add Seasonings: Once the paste is fragrant, stir in grated palm sugar, tamarind paste, and fish sauce. Allow the mixture to simmer gently, stirring occasionally, until it thickens to a paste-like consistency. Adjust seasoning to taste.

Cool and Store: Remove the pan from heat and let the Nam Prik Pao paste cool to room temperature. Transfer it into sterilized jars or airtight containers, ensuring they are tightly sealed. Refrigerate the paste to maintain its freshness and flavors for up to 2 weeks.