Shao Khan was hard the 1st few times, but even on the highest settings, he's a cake walk now.
One stagey that is full proof. TURTLE.HIS.ASS! Wait for him to do a move that leaves him open (taunt, charge, arrow, some normals, etc.), if you're feelin really risky, bait'im. Jump in on'im or (over him), right outta range and whiff a few jabs or fast recovery moves, make'im do somethin stupid. Time his attacks correctly and punish with BnBs if you know them and they work on him. If you don't know any BnBs, hit'im with the best you can muster.
Sounds familiar doesn't it?