In a large bowl, combine the curry powder, black pepper, lemongrass, lime juice and 2 tablespoons of the coconut oil. Season with 1/2 tablespoon salt. Add the chicken, turn to coat and refrigerate for 4 hours.
In a food processor, puree the shallots, red onion, garlic, and ginger.
In a deep skillet, heat the remaining 1/3-cup of coconut oil. Fry the puree paste over moderately high heat, stirring until lightly browned, about 5 minutes. Then remove from the pan and set aside.
Add the chicken with its marinade and cook over moderate heat until the chicken is browned and nearly cooked through, about 10 minutes. Add the coconut milk, coconut palm sugar, and toasted coconut and simmer over moderate heat, stirring, until the chicken is tender and the sauce is very thick, about 25 minutes.
Spoon off as much oil as possible and discard the lemongrass. Season with freshly ground black pepper, to taste and the rest of the salt, and serve.
Make Ahead: The rendang can be refrigerated for 2 days. Re-warm before serving.
