Spice Paste
Add all the ingredients of the spice paste in a food processor. Blend well.
Heat the oil in a non stick wok or deep pan, add cinnamon, cloves, star anise, and cardamom pods, shallots and curry powder. Stir-fry them until aromatic.
Add the spice paste and keep on frying it for a few minutes.
Add the chicken and lemongrass, stir to combine well with the spices. Add the coconut milk, water and simmer on medium heat, stirring frequently until the chicken is almost cooked.
Add the kafir lime leaves, toasted coconut, soy sauce and blend well with the chicken. Lower the heat to low, cover the lid, and slowly simmer for 30 minutes or until the chicken is tender and the liquid has dried up.
Add more sugar and salt to taste. Serve immediately with coconut rice.
