Go to Settings, scroll to the very top (beyond what shows as the top when you first open it). There's a search field (this is in a lot of other "list" styled interfaces like contacts as well). Type "undo" into the field. It'll bring up the location in settings to disable "shake to undo".
It's under the Accessibility settings if you want to just browse around for it.
It's under the Accessibility settings if you want to just browse around for it.