- 1/2 cup dried shrimp
- 1/2 cup dried scallops
- 1/2 cup coarsely chopped Chinese bacon, country ham, or proscuitto
- 1/2 cup coarsely chopped Chinese sausage
- 1 1/2 cups canola oil
- 2 shallots, peeled and finely chopped
- 1/4 cup crushed red pepper flakes
- 1/4 cup thinly sliced garlic
- 1/4 cup finely chopped fresh peeled ginger
- 3 star anise
- 1/2 stick cinnamon
- 1/4 cup soy sauce
- Coarse salt
Place dried shrimp in a medium bowl; add enough water to cover by at least 1 inch. Repeat process with scallops; let stand overnight.
Drain dried shrimp and scallops; discard liquid and coarsely chop each. Transfer shrimp to the bowl of a food processor; pulse until finely chopped. Set aside. Repeat process with scallops, bacon, and sausage; set each aside.
Heat 1 cup canola oil in a large heavy-bottomed skillet over medium-high heat. Add shallots and cook, stirring, until soft and translucent, about 30 seconds. Add crushed red pepper flakes and cook 1 minute more. Add garlic, ginger, star anise, and cinnamon; stir to combine.
Increase heat to high; season with salt and add soy sauce. Add sausage, bacon, shrimp, and scallops, stirring after each addition.
Add remaining 1/2 cup oil; reduce heat to low and simmer until oil is infused, about 30 minutes, stirring every 5 minutes. Remove from heat and let cool before transferring to an airtight container. XO sauce may be kept refrigerated, up to 1 month.