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This is the best recipe I've found for this particular dipping sauce, from Tauntons Fine Cooking website. If you prefer it spicier, add half a teaspoon of ground chili paste.
- In a mortar and pestle, pound the garlic and fresh chilies to a paste. (Or mince them together with a knife.)
- In a small bowl, combine this garlic and chili mixture with the chili paste, hot water, and sugar. Stir well.
- Add the fish sauce and lime juice and combine.
- Float the carrots on top. Let sit for at least 15 minutes before using.
- *Dipping sauce will keep in the refrigerator for a month.