Combine the shallots, ginger, garlic, Malaysian curry powder, kashmiri chili powder and oil in a blender.
Add a couple tablespoons of water. Puree. If it won't go add more water a tablespoon at a time until it does.
Cook the potatoes in salted water until just barely done. They will cook a little longer in the curry. Reserve one cup of the cooking water. Set the potatoes aside.
Heat the remaining 4 tablespoons of oil in a pot large enough to hold the final curry over medium low heat. When the oil is hot add the cinnamon and star anise. Let cook for 15-20 seconds.
Add the curry paste. Cook the curry paste, stirring occasionally, until the oil separates. Cook another two or three minutes after that.
Add the chicken and stir to combine. Cook for a minute or two. You aren't trying to brown the chicken here.
Add ½ cup of the reserved potato cooking water. Stir, scraping up any bits on the bottom until it's pretty well combined.
Add the coconut milk, fish sauce and curry leaves. Stir to combine.
Slip in the lemongrass stalk and bring to a simmer. Cover. Cook for 20 minutes.
Add the potatoes. Stir to combine and simmer until the chicken is done. This takes another 10-15 minutes.
Serve with jasmine rice and a flat bread like roti or parathas.
