Combine shallots, garlic, red chilies, turmeric, cumin, and candlenuts in a food processor until a smooth mixture is achieved.
In a big saucepan, heat the vegetable oil. When aromatic, add the spice paste and sauté. Add chopped meat.
Stir in star anise, cinnamon, bay leaves, and bruised lemongrass. Allow the fragrances to blend together by stirring.
Sprinkle palm sugar and salt to taste. You may also optionally add a cube of chicken stock to give it even more flavor. Blend well.
Add water and both light and thick coconut milks. Give it a good stir to allow the flavors to come together.
Lower the temperature to a low simmer. Allow the stew to simmer for two to three hours, or until the sauce thickens and the meat becomes tender. To keep it from sticking, stir from time to time.
Add some toasted coconut to the meat once it's soft and the sauce has thickened. It will taste deliciously creamy.
Serve your homemade rendang with your preferred side dishes or over steaming rice. You won't soon forget the deep, Savoury stew as a taste of Indonesia!