Heat the peanut oil in a small saucepan over medium-low heat.
Add the minced shallot and sauté for 2 minutes until it begins to soften.
Stir in the minced garlic and red pepper flakes, and cook for another minute until fragrant.
Whisk in the creamy peanut butter, light coconut milk, soy sauce, brown sugar, and water.
Continue whisking until the sauce is completely smooth.
Bring the mixture to a gentle boil, then reduce the heat to a simmer.
Let it cook for 5 minutes, stirring occasionally, as it thickens.
Remove the saucepan from the heat and stir in the fresh lime juice.
Serve immediately while warm, or let it cool to room temperature. The sauce will thicken as it cools.