In this context, "to down" means "to drink" and "stiff" means "strong". So, "a stiff shot" is "a strong shot (of alcohol)".
"to down a stiff shot" means "to drink a strong shot (of alcohol)".
But it doesn't necessarily mean he drank heavily. He may have only had one shot. But if he drank three or four shots, then yes, he would be drinking heavily.