Grind whole dried chilies (including seeds) until small flakes.
For the oil infusion, add all the ingredients in a saucepan and bring to a light simmer over low heat. Allow to simmer for 1-2 hours, but do not let garlic brown. Pour through a strainer, and discard the solids. Pour infused oil back into pot.
Add the chili pepper flakes, peppercorns, sesame oil, and salt to the infused oil and bring to a light simmer over medium heat. Allow to simmer for 3-5 minutes, or just until the red pepper flakes start to darken. Immediately pour into a glass jar and allow to cool completely. If mixture is left in saucepan to cool, pepper flakes will continue to cook and will eventually burn.
Allow to cool completely, then store in a sealed jar. Will keep (unrefrigerated) for a month.
Notes
The longer the oil sits, the more flavorful (and stronger) it will become.