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Cut the bird chiles into 2-centimeter-long pieces and soak in warm water for 5 to 10 minutes to soften. Place the shallots, garlic, lemongrass, and bird chiles in a food processor and pulse. (If you want a hotter rending, add more chiles. Or for a milder one, use less.) With the processor running, add 1/2 cup water and process until a paste forms.
In a heavy pan, add the prepared chili paste, beef, pork belly, coconut milk and about 3/4 cup water. Bring to a boil, and then reduce the heat to medium and simmer, stirring occasionally, until the mixture is reduced and thick, about 30 minutes.
Add the ground toasted coconut, salt, sugar and kaffir lime leaves. Cook for another 5 minutes. Taste and adjust seasonings. Serve the redang garnished chopped roasted peanuts and cilantro.
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