Slit chillies lengthwise for stuffing. Remove seeds and soak in water for about 15 minutes.
Filet the fish and cut the meat into chunks. Put the fish, shallots, grated coconut into blender and blend until fine. Add salt and sugar to taste.
Stuff the mixed ingredients into the chillies. Place chillies, slit side up in a pot. Pour in the coconut milk slowly and add a touch of salt. Cover pot and simmer gently for 15 minutes until cooked and almost dry.