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1. Process 1 cup basil leaves, garlic, and chiles in food processor until finely chopped, 6 to 10 one-second pulses, scraping down bowl with rubber spatula once during processing.
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2. Transfer 1 tablespoon basil mixture to small bowl and stir in 1 tablespoon fish sauce, oyster sauce, vinegar, and sugar; set aside.
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3. Transfer remaining basil mixture to 12-inch heavy-bottomed nonstick skillet. Do not wash food processor bowl.
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4. Pulse chicken and 1 tablespoon fish sauce in food processor until meat is chopped into -approximate 1/4-inch pieces, six to eight 1-second pulses.
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5. Transfer to medium bowl and refrigerate 15 minutes.
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6. Stir shallots and oil into basil mixture in skillet.
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7. Heat over medium-low heat (mixture should start to sizzle after about 11/2 minutes; if it doesn't, adjust heat accordingly), stirring constantly, until garlic and shallots are golden brown, 5 to 8 minutes.
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8. Add chicken, increase heat to medium, and cook, stirring and breaking up chicken with potato masher or rubber spatula, until only traces of pink remain, 2 to 4 minutes.
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9. Add reserved basil-fish sauce mixture and continue to cook, stirring constantly until chicken is no longer pink, about 1 minute.
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10. Stir in remaining cup basil leaves and cook, stirring constantly, until basil is wilted, 30 to 60 seconds.
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Serve immediately, passing extra fish sauce, sugar, red pepper flakes, and vinegar separately.
