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Begin by preparing the chillies and shallots. Remove the stems from the fresh red chillies and the bird's eye chillies, then chop them roughly.
Peel and slice the shallots.
In a blender or food processor, combine the chopped chillies and shallots. Blend until you achieve a smooth paste.
Heat the cooking oil in a pan over medium heat. Once hot, add the blended mixture to the pan.
Stir the mixture continuously to prevent it from sticking to the pan. Cook for about 5-7 minutes until the oil starts to separate from the paste.
Add the salt, sugar, chicken stock powder, and shrimp paste to the pan. Mix well to combine all the ingredients.
Tear the kaffir lime leaves into smaller pieces and add them to the sauce. Continue to cook for another 2-3 minutes.
Once the sauce is well combined and fragrant, remove it from the heat and let it cool before serving.