Blend shallots, chillies, garlic, ginger, galangal, turmeric, peppercorns, and cloves into a smooth paste using a food processor or mortar and pestle.
Heat oil in a heavy-bottomed pot over medium heat. Sauté the spice paste with cinnamon stick, lemongrass, and lime leaves until fragrant, about 5-8 minutes.
Add beef cubes to the pot and brown slightly on all sides, stirring to coat with the spice mixture.
Stir in coconut milk, palm sugar, and salt. Bring the mixture to a boil.
Reduce heat to low and simmer uncovered for 2-2.5 hours, stirring frequently, until beef is tender and sauce has reduced to a thick, dark coating.