Dissolve palm sugar in warm water and lime juice, stirring for 2-3 minutes until no grainy bits remain.
1 tablespoon palm sugar, 2 tablespoons water, 3 tablespoons lime juice
Pound garlic cloves and red Thai bird's eye chilies in a mortar and pestle until crushed but not pureed.
3 cloves garlic, 3-5 count red Thai bird's eye chilies
Mix the pounded garlic-chili mixture with the dissolved sugar liquid and fish sauce, stirring vigorously for 30 seconds until combined.
3 tablespoons fish sauce, 3 tablespoons lime juice, 1 tablespoon palm sugar, 3-5 count red Thai bird's eye chilies, 3 cloves garlic
Add chopped cilantro and shallot if using, mixing gently to combine.
2 tablespoons cilantro, 1 count shallot
Taste and adjust flavors by adding small amounts of fish sauce, lime juice, sugar, or chili until the sweet-sour-salty-spicy balance is perfect.
3 tablespoons fish sauce, 3 tablespoons lime juice, 1 tablespoon palm sugar, 3-5 count red Thai bird's eye chilies