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In a small saucepan, heat the oil over medium-high until it registers 275°F on a deep-fry thermometer. Add the shallots and cook, stirring, until light golden brown, about 8 minutes. Using a slotted spoon, transfer the shallots to a paper towel-lined plate to drain.
Increase the heat to high and place a fine-mesh sieve over a heatproof bowl. When the oil registers 350°F on the deep-fry thermometer, add the once fried shallots and cook just until they are crispy and well-browned, about 1-2 seconds, watching carefully so the shallots don't burn.
Immediately pour the oil and shallots through the sieve to stop the cooking, then transfer to shallots to a paper towel-lined plate to drain. Reserve the oil for another use. The shallots will keep, stored in an airtight container, for 1 day, but they're best the day they are made.