Place oil in wok set over medium heat allow this to heat 10 – 20 seconds. Add shallots and curry paste. Cook shallots until opaque, do not brown.
Add chicken followed by milk, water, fish sauce, sugar and lime leaves (chopped). Stir ingredients together. Cook over medium heat for approximately 10 minutes. Reduce heat and continue to cook until the sauce is slightly thickened and chicken to cooked through.
Reduce heat to low add Thai basil (chopped), snow peas and red pepper. Let cook for 2 – 3 minutes and serve.
Serve over Jasmine rice with chopped cilantro sprinkled on top.