Chop ginger into quarter inch slices. Chop peppers into half inch diagonal slices. Remove outer layer of lemongrass. Chop off the bottom root part and the green leafy parts at the top. Chop into 2 inch pieces.
In a small pot, saute garlic until golden brown. Remove from heat and add chicken broth. Add ginger, pepper, lemongrass, curry powder, salt, and sugar. Cover on medium heat and let simmer for 15-20 minutes.
Remove from heat and strain ginger, pepper and lemongrass. Return strained curry broth to pot.
Add peeled shrimp to curry broth and cook for 5-7 minutes. Slowly add coconut milk, stirring continuously. Add cornstarch and let simmer for an additional 10 minutes. The final product should be a beautiful creamy mustard color.
Serve over prepared grits and garnish with chopped Thai basil and red pepper flakes.