Step 1Combine water, rice and lemon grass in medium saucepan. Bring to boil, reduce to simmer and cook, covered, 15 minutes. Remove from heat and let stand, covered, 5 minutes. Remove lemon grass from rice and discard. Keep rice warm.
Step 2Place coconut on baking sheet and toast at 375 degrees until golden brown, about 8 minutes, stirring once. Remove from oven and cool.
Step 3In large skillet, heat oil over medium-high heat. Add ginger, garlic and curry paste and cook 1 minute, stirring constantly. Add coconut milk and simmer until thickened, about 3 minutes. Remove sauce from heat and place in blender with cilantro. Puree until smooth, 2 minutes. Return sauce to skillet, bring to simmer and add shrimp and red pepper. Simmer until shrimp are just pink, 4 to 6 minutes. Add fish sauce, lime juice and season with salt and pepper. Serve with rice. Top with toasted coconut.