If you are using fresh lemon grass, discard the outer leaves and upper half of the stalk. Slice paper-thin; chop very fine. If you are using dried lemon grass, soak in warm water for 1 hour. Drain and finely chop.

In a bowl, combine the beef with the lemon grass, chiles, sugar, ginger, cinnamon, curry powder, fish sauce and black pepper to taste. Sprinkle in 1 teaspoon of the salt; mix well. Let stand for 30 minutes.

Heat 2 tablespoons of the oil in a large, heavy saucepan or pot over high heat. Add the beef and marinade and stir quickly to sear, about 2 minutes. Remove the meat to a bowl.

Add the remaining 1 tablespoon oil to the saucepan. When the oil is hot, add the onion and garlic and stir-fry until fragrant, about 1 minute. Add the tomato paste and stir for 2 minutes. Add the beef, star anise, the remaining 1 teaspoon salt and 4 cups of water. Bring the mixture to a boil. Reduce the heat to low, cover the pan and simmer until the beef is tender, about 1 ½ hours.

Add the carrots and simmer for 10 minutes. Add the potatoes and continue simmering for 10 minutes longer. Add the daikon and cook for another 10 minutes.

Serve hot with French bread.