Step 1

Set the chunks of beef into a bowl or sealable baggie. Whisk together the fish sauce, 5-spice powder, salt and pepper. Pour over the beef and marinate while you prepare your other ingredients. (NOTE: I like to marinate at least 30 minutes, though longer is better. Consider starting your marinade the morning of cooking).

Step 2

Heat the vegetable oil in a large pot or Dutch oven to medium-high heat. Add the beef in batches and brown each side, turning as needed – about 10 minutes total. Set the beef aside onto a plate.

Step 3

Reduce the heat to medium and add the onion and peppers. Cook for 10 minutes, stirring often, until the onion starts to brown.

Step 4

Add the garlic and cook for 30 seconds, or until the garlic blooms.

Step 5

Stir in the lemongrass, ginger, tomato paste, star anise, and ground annatto. Mix well in the bottom of the pot.

Step 6

Add the beef stock and coconut water, then the browned beef along with any juices from the plate. Bring to a boil, then reduce heat. Cover and simmer for 1.5 hours, or until the meat is tender, stirring as needed.

Step 7

Add the carrots, chili oil, and soy sauce. Stir, then cover and simmer 30 minutes, or until the carrots are cooked and the beef very tender. Remove from heat.

Step 8

Stir in the fish sauce. Taste and adjust for salt and pepper.

Step 9

Serve with Thai basil or fresh chopped herbs.