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BRING coconut milk to simmer in large skillet on medium heat. Stir in curry paste and sugar until well blended; bring to boil. Reduce heat to low; simmer 5 minutes.
STIR in shrimp and vegetables. Cook 3 to 5 minutes or just until shrimp turn pink and vegetables are tender-crisp. Stir in basil and fish sauce.
SERVE with jasmine rice, if desired. Garnish with additional basil and red chile slices, if desired.
Thai Kitchen Tip: Thai basil has dark green leaves with purple stems and has a licorice flavor. It can be found in most Asian groceries. If unavailable, substitute Italian basil.