Peel and chop the shallots, ginger, and garlic. Remove the outer leaves from the lemongrass and cut the lower third into small pieces.
Rinse and peel the chilies. Grind the vegetables with the sugar and oil in a mortar and pound to a fine paste. Rub the schnitzel in the marinade and let sit for 30 minutes.
Heat a frying pan over medium heat. Dab the schnitzel with paper towels and cook on each side for 3-4 minutes. Season with salt and pepper.