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Place the shallots in a heat proof bowl.
Add the peppercorns to a small pot. Toast over medium-low heat until fragrant, 30 seconds to 1 minute. Add the vinegar, water, sugar, and salt to the pot. Cook and stir until the sugar and salt are fully dissolved and the liquid is coming to a simmer.
Pour the hot pickling liquid over the shallots. Let the shallots cool completely.
Serve immediately, or you can store them in the fridge for up to 2 weeks.