In a large skillet, sauté the onions on medium in 2 teaspoons oil until caramelized (browned and sweet), 8 to 10 minutes. Meanwhile, in another large skillet, sauté pepper strips and remaining oil on medium, about 3 minutes. Add the shrimp; cook for another 2 to 3 minutes, until they are opaque.
In a blender, puree onions and curry paste with water until almost smooth. Add puree, light coconut milk, and curry powder to the shrimp mixture. Bring to a boil and cook, uncovered, 2 to 3 minutes to thicken slightly. Stir in the rice; cook another minute or two.