I'm going to forgo answering the first part of your question on readings for the shelf exam, as I haven't studied for the shelf exam in many years, but I'll answer the second part on what books I recommend for psychiatry residency.
For psychiatry residency, I would recommend:
* Psychopharm: I started with Stahl's Essential Psychopharmacology to begin to get a handle on psychopharm in residency. The problem with Stahl, though, is that it's not always as evidence-based as it can be and he simplifies reality to make it digestible. I don't think that's a bad thing if you read it from that perspective and I still think it's a good start. It gives you a nice foundation and helps you structure and understand the concepts behind psychopharm. After Stahl, I would suggest moving on to the big Schatzberg and Nemeroff text on psychopharm, The American Psychiatric Publishing Textbook of Psychopharmacology. Many would probably disagree and say that that's overkill, but I think it balances and refines what you might have learned in Stahl very well because it's more evidence-based and less theoretical. It is a bit dry, though.
* For supportive psychotherapy, Winston et al, Learning Supportive Psychotherapy: An Illustrated Guide is very good.
* Gabbard's Long-term Psychodynamic Psychotherapy: A Basic Text is good for an introduction to important concepts in psychodynamic therapy.
* Just like I recommended a progression of books for psychopharm, I would suggest a progression of readings on CBT. Otto et al.'s 10 Minute CBT is a good book. It really isn't comprehensive and doesn't really fill its stated goal of teaching the reader how to fit CBT sessions into briefer meetings. However, it does shine in that it is short and clearly written, so it is a very quick read. Also, it has some very concrete treatment interventions and handouts that are very practical. The Feeling Good Handbook by David Burns is a classic CBT-oriented self-help book, but it's got real CBT concepts in it, so learners can read it themselves, simply as an educational exercise and use it to get a better grasp on CBT for depression and ways of presenting it to your patient. If you've read one or both of those, only then you might move on to Judith Beck's Cognitive Behavioral Therapy: Basics and Beyond. This is much more comprehensive than Otto or Burns, but of course is longer and denser to slog through. I highly recommend starting with either Otto et al and or Burns before tackling this one.
* I liked Kaufman's Neurology for Psychiatrists text for neurology.
* Read the long-form DSM as you are seeing patients with certain diagnoses. Don't just read the diagnostic criteria, although those are of course helpful, too.
* Review articles! Definitely, on a case by case basis and when confronted by a case that you're trying to understand, find review articles to read about whatever clinical topics you're trying to understand.
* For PRITE study, which is the yearly exam that you take during psychiatry residency, I exclusively used the Kaufman text and Speigel & Kenny and they worked very well for me.
There are many other books that I found helpful. I made a reading schedule during residency and made sure to finish a certain small amount every week (barring my medicine months when there was no time).
Hope that helps!