Blend the red chilies, ginger, galangal, garlic, and shallots in a food processor with a splash of water to form a smooth spice paste (rempah).
Heat the cooking oil in a large heavy-bottomed pot or Dutch oven over medium heat. Add the spice paste and sauté for 5 to 10 minutes until fragrant and the oil begins to separate.
Add the beef cubes to the pot, stirring well to coat the meat evenly in the spice paste. Cook until the beef is browned on all sides.
Pour in the coconut milk, then add the bruised lemongrass, kaffir lime leaves, star anise, cloves, brown sugar, and salt. Bring the mixture to a gentle boil.
Reduce the heat to low, cover partially, and let it simmer for 2 to 3 hours. Stir occasionally to prevent the bottom from burning.
Once the beef is incredibly tender and the liquid has mostly evaporated, stir in the kerisik (toasted coconut). Continue to cook uncovered for another 20 to 30 minutes until the oil separates and the sauce deeply coats the meat.
Remove from heat, discard the large whole spices and lemongrass stalks, and serve warm with steamed white rice.