Add the oil to a wok along with the chillies, shallot, garlic, peppercorns. Add the cinnamon stick and star anise.
Heat the oil to medium-low and simmer for 20-30 minutes, or until the ingredients in the pot are browned and crispy. The timing can vary based on the heat of the oil, do not try and hurry this process.
Remove from heat and allow to cool for 2-3 minutes or longer. The flavours will infuse the oil even further.
In a separate heat-proof bowl, mix together the chili flakes, paprika, soy sauce, sugar and salt.
Strain the oil into the chili flake mixture. Reserve the crispy chilli-shallot-garlic bits in the strainer and set them aside for now to cool, which will allow them to fully crisp up.
Discard the cinnamon stick and star anise pods, then swirl the crispy bits back into the oil.
When cool, stir through toasted sesame seeds.
Store in an airtight jar at room temperature and use as needed in small amounts on noodles, eggs, over chicken or fish, or as a condiment on demand.