Toasted Coconut: In small dry skillet, toast coconut over medium-low heat, stirring, until golden. In clean coffee grinder or blender, grind it to coarse powder. Then, set it aside.
Rendang Paste: In food processor, combine all paste ingredients to make smooth rendang paste
Heat the oil in a saute pan large enough to take the mutton pieces in a single layer.
Add the cinnamon stick, star anise, cardamoms, and cloves fry over medium heat for 1 minute.
Add 1 cup of coconut milk, rendang paste, toasted coconut, kaffir lime leaves, turmeric powder, and tamarind juice and stir them well. Then, add the mutton.
Cook over medium-high heat, stirring constantly, until sauce is very thick for 40 minutes.
Add some water if the sauce is too thick. Lastly, add sugar and salt to taste.
Serve it with rice or bread.