1. Make the pepper paste: Heat olive oil in a skillet over medium-high heat. Toast garlic lightly, then add remaining ingredients and lightly caramelize. Season with salt, puree in a blender, and set aside.
2. Make the sofrito: Heat olive oil in a skillet over medium-high heat. Toast garlic lightly and add peppers, and cook for 2 to 3 minutes. Add onions and cook until translucent. Season with salt and set aside.
3. Make the shallots: In a 4-quart pot fitted with a deep fry thermometer, heat oil in to 300 degrees. Add shallots and fry, stirring occasionally just until they start to brown. Strain shallots and reserve oil for a second fry. Return oil to the pot and heat to 350 degrees. Return shallots to the oil and fry until golden brown. Watch carefully as they will brown quickly. Remove shallots, once again reserving oil. Drain the crispy shallots on paper towels and season with salt. Set shallots and ¼ cup of the reserved oil aside.
4. Make the rice: Heat shallot oil in a large, nonstick or cast-iron skillet over medium-high heat. In a large bowl, combine crab, rice, sofrito, pepper paste, Old Bay, and lemon juice. Season with salt and mix to combine. When pan is hot, add crab-rice mixture and cook for a few minutes without stirring, allowing rice to get crispy and brown. Once the rice has a good amount of crispy bits, divide between four bowls and garnish the tops with chopped peanuts, crispy shallots, and sliced green onion.