In a food processor or blender, combine the soaked dried chilies, fresh chilies, onion, garlic, ginger, galangal, ground coriander, ground cumin, and ground turmeric.
Blend into a smooth paste, adding a bit of water if necessary.
Heat vegetable oil in a large pot or Dutch oven over medium heat.
Add the spice paste and cook, stirring frequently, until the paste is fragrant and the oil starts to separate, about 5-7 minutes.
Add the beef cubes and cook, stirring occasionally, until the beef is browned on all sides.
Pour in the coconut milk and water, then add the kaffir lime leaves, lemongrass, turmeric leaves (if using), cinnamon stick, star anise, tamarind paste, and palm sugar.
Bring to a boil, then reduce heat to low. Cover and simmer for 1.5 to 2 hours, stirring occasionally, until the beef is tender and the sauce has thickened. Adjust seasoning with salt and additional sugar if needed.
Once the beef is tender and the sauce has thickened, uncover the pot and cook for an additional 15-20 minutes, stirring frequently, to allow the sauce to caramelize and coat the beef.
Enjoy your meal!