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In a medium heat-proof bowl, combine the fennel seed and red pepper flakes. Set aside near your stove.
To a cold, small saucepan, add the olive oil, sliced shallots, and sliced garlic. Set over medium-low heat. Cook, stirring frequently, as the oil gradually comes up to temperature and bubbles consistently. Maintain a gentle simmer for 10–12 minutes, until the moisture cooks off and the shallots and garlic turn a light golden yellow. Add in the pistachios and cook till everything is a deep golden brown. Watch the heat! Shit burns fast here. Remove the pan from the heat immediately. Strain out the solids to let them cool and crisp up.
Pour the hot oil and fried aromatics directly over the dry spice mixture in your heat-proof bowl. The hot oil will sizzle and bloom the spices without scorching them.
Let the oil cool completely at room temperature—the nuts and shallots will continue to crisp as they cool. Add the Parmesan Cheese. Pour the cooled oil back over the nut mixture and transfer the Crackle Oil to an airtight glass jar and store in the refrigerator for up to 3 weeks. Warm slightly before serving if the olive oil solidifies in the fridge.