Add the banana shallot, galangal, lemongrass, garlic, ginger and dried chilli to a food processor. Blend to a smooth paste.
Heat the vegetable oil in a heavy pan over a medium heat.
Add the spice paste, cinnamon stick, clove, star anise and cardamom pod. Fry gently until fragrant.
Add the beef and bruised lemongrass, then stir well to coat the meat in the spices.
Pour in the coconut milk, water and tamarind paste. Bring to a gentle simmer, stirring regularly.
Cook over a medium-low heat until the beef is nearly tender.
To make the toasted coconut, add grated coconut to a dry pan and cook over a medium heat, stirring continuously until golden brown.
Add the kaffir lime leaves, toasted coconut and palm sugar. Stir well to combine.
Reduce the heat to low, cover loosely and simmer for 1–1½ hours until the beef is tender and the sauce has thickened and reduced.
Season to taste with sea salt.
Serve with steamed rice.