Tie caraway seeds in a cheesecloth bag.
Combine water and salt in a large Dutch oven. Add cheesecloth bag. Cover and bring to a boil; boil 5 minutes. Uncover and add shrimp; simmer 3 minutes. Drain, discarding cheesecloth bag.
Peel and devein shrimp. Serve shrimp hot or chilled with cocktail sauce.