In a spacious mixing bowl, add the freshly grated carrots.
In a small saucepan, mix together sugar, water, and vinegar; bring the mixture to a boil, stirring until the sugar fully dissolves, which should take about 5 minutes.
Lower the heat to medium and introduce garlic, fish sauce, and curry paste to the saucepan; let it simmer for 2 to 5 minutes to allow the flavors to meld together.
Remove the saucepan from heat and let the dressing cool completely, which will take approximately 30 minutes.
Once cooled, mix in fresh lime juice and a dash of red pepper flakes, then pour this flavorful dressing over the grated carrots.
Add a handful of crushed peanuts, tossing everything together to ensure the carrots are well coated.
Chill the salad in the refrigerator for at least 30 minutes before serving to enhance the flavors.