Add all paste ingredients to a food processor and blend until it makes a thick paste. Set aside.
Heat oil in a large pot. Add the paste and cook for 2 minutes, stirring.
Slice beef into 2 inch chunks, add to pot. Stir to coat with paste.
Add coconut milk, bay leaves, lemongrass, cinnamon, sugar, and salt. Stir.
Bring to a boil, reduce heat to medium. Simmer uncovered for 1 hour. Stir often.
Reduce heat to low and simmer for 2-4 hours until beef is tender (it should break apart easily).
Remove large spices (cinnamon, lemongrass, bay leaves).
Serve with rice and enjoy!