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Tip the desiccated coconut into a dry frying pan or wok, and gently toast over medium heat, stirring with a spatula to evenly disperse the heat, for 5-10 minutes, or until golden and toasty smelling. Transfer the toasted coconut to a bowl and allow to cool, then pulse in a food processor until it resembles sawdust.
For the spice paste, coarsely chop the chillies, onions, garlic, ginger, galangal and lemongrass, place in a food processor with the spices and process to a fine paste. Add water if required to help loosen it.
Heat the peanut oil in a large heavy based saucepan or wok over medium-high heat until smoking. Add the spice paste, then reduce the heat and stir-fry for 10-12 minutes until the oil separates. Add tamarind paste, lemongrass stem, beef, kaffir lime leaf, sugar, salt and water. Simmer for 15 minutes.
Pour in the coconut cream, reduce the heat and simmer without a lid for 1.5-2 hours, stirring occasionally. Add the toasted coconut and cook for another 30 minutes until the meat is tender and the sauce thickens. Adjust the flavor with salt, tamarind, and sugar if needed. Garnish with kaffir lime and serve with roti and/or steamed rice.