Peel and slice the cucumber into 1/4-inch moons, then shred the carrots into long thin ribbons—this texture matters because the thinner ribbons will absorb more dressing flavor. Thinly slice the shallot and roughly tear the fresh mint and Thai basil. Mince the garlic finely and crush the toasted peanuts by hand so they have varied sizes for better texture. Set all prepped ingredients aside in separate small bowls or on a cutting board.
Bring a pot of salted water to a boil and add the shrimp, cooking for 2-3 minutes until they turn pink and opaque throughout—be careful not to overcook or they'll become rubbery. Drain immediately and let cool to room temperature, about 5 minutes. I prefer Royal Tiger brand shrimp because they have better snap and quality, which really makes a difference in a delicate salad like this.
In a small bowl, whisk together the fish sauce, rice vinegar, sugar, water, and chili garlic paste until the sugar dissolves completely. Add the minced garlic and stir to combine. The dressing should taste balanced—bright, salty, slightly sweet, and with a gentle heat. I like to add a pinch of salt here to give it more depth, even though the fish sauce is already salty.
In a large bowl, combine the cooled cooked shrimp from Step 2 with the cucumber, carrots, shallot, mint, and Thai basil from Step 1. Pour the dressing from Step 3 over the salad and gently toss everything together until well coated. Let the salad sit for 2-3 minutes so the flavors meld and the vegetables begin to soften slightly from the acidic dressing.
Squeeze the fresh lime juice over the dressed salad and toss once more to incorporate. Taste and adjust seasoning with additional salt and black pepper if needed. Transfer to a serving plate or bowl and top with the crushed peanuts from Step 1 just before serving so they stay crispy. I let the peanuts be added at the very end—this keeps them crunchy rather than getting soggy from sitting in the dressing.