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In a medium bowl, mix together the potatoes, shallots, egg, flour, cocoa nibs and chili paste. Just before cooking, stir in the salt.
Heat a medium nonstick skillet over medium-high heat. Add 2 tablespoons of the oil to the skillet and heat another 30 seconds. Add 1/4-cup mounds of the potato mixture to the skillet and flatten slightly, being careful not to overcrowd. Press out the excess liquid each time with a heatproof spatula to avoid gummy pancakes. Cook the first batch until golden brown on the bottom, about 4 minutes on the first side. Flip the pancakes and cook another 3 minutes on the second side. Remove to a cooling rack to drain and sprinkle with a pinch of salt. Continue with the remaining oil and potato mixture, adding oil as needed.
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