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Heat ½ cup neutral oil in a small saucepan over medium-low heat.
Add the shallots and garlic, stirring frequently. Cook until golden brown and crispy (about 8-12 minutes). Don’t burn them—once golden, use a slotted spoon to remove them and drain on a paper towel.
In a heatproof bowl, combine crushed red pepper flakes, smoked paprika, salt, sugar, soy sauce, MSG, Sichuan peppercorns, and five-spice powder.
Slowly pour the hot oil over the chili mixture, stirring gently. It should sizzle as it hits the spices, blooming their flavors.
Once the oil cools slightly, stir in the fried shallots, fried garlic, sesame seeds, and peanuts.
Transfer to a clean jar and let the flavors meld for at least 24 hours before using. Store in the fridge for up to 1 month.