In a large skillet over medium heat, heat the olive oil until shimmering.
Add the diced shallot and cook for 3-5 minutes, or until softened. Add the garlc and cook for 30 more seconds.
Slowly pour in the vodka and stir, scraping up any browned bits on the bottom of the pan. Let it simmer for 1-2 minutes to cook off the alcohol.
Add the tomato paste and stir to coat the shallot and garlic. Cook for about 2 minutes, until the paste deepens in color.
Pour in the heavy whipping cream, then add the salt, pepper, and red pepper flakes. Stir until everything is fully combined and the sauce is smooth.
Let the sauce simmer for 5-8 minutes, stirring occasionally. If the sauce becomes too thick, stir in water, one tablespoon at a time, until your desired consistency is reached.
Add the butter and parmesan cheese, stirring until the butter is melted and the cheese is fully incorporated.
Remove from heat and garnish with fresh basil and more paremsan before serving over your favorite pasta.