We explore the utility of Karhunen Loeve (KL) analysis in solving practical problems in the analysis of gravitational shear surveys. Shear catalogs from large-field weak lensing surveys will be subject to many systematic limitations, notably incomplete coverage and pixel-level masking due to foreground sources. We develop a method to use two dimensional KL eigenmodes of shear to interpolate noisy shear measurements across masked regions. We explore the results of this method with simulated shear catalogs, using statistics of high-convergence regions in the resulting map. We find that the KL procedure not only minimizes the bias due to masked regions in the field, it also reduces spurious peak counts from shape noise by a factor of ~ 3 in the cosmologically sensitive regime. This indicates that KL reconstructions of masked shear are not only useful for creating robust convergence maps from masked shear catalogs, but also offer promise of improved parameter constraints within studies of shear peak statistics.