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For the marinade: Place the shallots, garlic, lemongrass, turmeric, salt and chile flakes in a mortar and pound to a smooth paste. Transfer to a large mixing bowl and add the olive oil. Add the eel and stir to combine. Let marinate for 20 minutes.
For the sauce: Remove the eel from the marinade. Heat a frying pan until hot and add the olive oil. Fry the eel, skin-side down, 2 minutes, then flip and fry 1 minute more. Remove the eel from the pan and set aside.