Start by soaking the dried chilies in hot water for about 15 minutes until they soften. Drain and place them in a blender with shallots, garlic, ginger, and galangal. Blend into a smooth paste, adding a splash of water if necessary.
In a large pot or Dutch oven, heat the cooking oil over medium heat. Add the cinnamon stick, cloves, star anise, and cardamom pods. Sauté for about 2 minutes until fragrant.
Stir in the blended spice paste and cook for about 5-7 minutes, stirring frequently. This helps to cook out the raw flavors of the spices.
Add the cubed chicken to the pot, coating it well with the spice mixture. Cook for another 5 minutes until the chicken is browned.
Pour in the coconut milk and water, then add the bruised kaffir lime leaves and lemongrass strips. Stir well to combine.
Bring the mixture to a boil, then reduce the heat to low. Cover the pot and let it simmer for about 45 minutes, stirring occasionally. The chicken should become tender, and the sauce will thicken.
Once the chicken is tender, stir in the toasted grated coconut (kerisik) and sugar. Season with salt to taste. Cook for an additional 10-15 minutes, allowing the flavors to meld.
Remove from heat and serve the Chicken Rendang hot with steamed rice or flatbreads. Garnish with additional kaffir lime leaves if desired.
