Start by preparing the red cayenne peppers. Using gloves, remove the stems and seeds of the cayenne peppers and discard. Finely slice the peppers and set aside.
Heat the oil in a large saucepan over medium heat. Once hot, add the minced shallots, garlic, and lemongrass. Fry for 2-3 minutes, or until shallots are golden brown.
Add the ginger and cook for another minute. Next, add the red cayenne peppers, sugar, and salt, and cook for 7-10 minutes, stirring regularly. You want the peppers to become softer, they should no longer have a raw smell.
Once peppers are soft, remove from heat and transfer everything to a food processor. Process for 10-20 seconds, or until it forms a slightly chunky paste.
Transfer to a clean glass jar, and let cool before storing in the refrigerator. Chili paste will keep for up to two weeks in the refrigerator.
Use this paste in marinades, soups, dips, bakes, and more! I like to mix it with some sesame oil, soy sauce, and maple syrup to marinate tofu and tempeh.