Preheat an oven to 400 F. In a food processor, combine the shallots, garlic, ginger, cilantro, Thai basil, and fish sauce. Pulse until a finely chopped mixture forms. Transfer the mixture to a mixing bowl with the chicken, pork, egg, bread crumbs, and salt. Mix well.
Using a cookie scoop, portion the meatballs out onto a baking sheet lined with parchment paper. Roll into smooth balls. Bake for 12 minutes and then broil on high for 5, until golden brown.
While the meatballs are cooking, make the sauce. In a large skillet or braiser, heat the oil over medium heat. Add the curry paste and lime leaves and cook, stirring often, for 2-3 minutes until very fragrant. Add the coconut milk and season with the fish sauce and palm sugar. Bring the sauce to a simmer for 10 minutes. Season to taste with salt and pepper.
Add the meatballs to the sauce and simmer for 5 minutes. Serve over steamed rice with Thai basil leaves, cilantro, peanuts, shallots, and chili oil for additional spice.