To make the rice, combine the rice, coconut milk, water, and salt in a large pot. Bring to a summer and cook until the liquid falls below the rice, about 10-15 minutes. Turn off the heat and cover the pot. Let sit while you prepare the cashew shrimp.
In a jar or bowl, combine the soy sauce, honey, and oyster sauce until incorporated. In a separate small bowl, whisk together 1 tablespoon of corn starch with 1 tablespoon of water to make a slurry.
Pat the shrimp dry. In a large ziptip bag or bowl, toss the shrimp with the remaining 2 tablespoons cornstarch, paprika, and a pinch of salt and pepper.
Heat 2 tablespoons olive oil in a skillet over medium heat. Sear the shrimp 2-3 minutes per side until golden. Move to a plate.
Add the red pepper to the same skillet along with 2 tablespoons of water. Stir fry for 2-3 minutes until still crunchy but softened. Stir in the garlic, ginger, red pepper flakes, and sesame oil for 1-2 minutes longer until very fragrant.
Pour the sauce into the skillet and bring to a simmer until slightly thickened about 2-3 minutes. Add the shrimp, cashews, and starch slurry. Cook until the sauce coats the shrimp and cashews. Remove from heat and stir in the basil.
Divide the rice and shrimp onto plates and garnish with additional basil and lime wedges, as desired.