We have obtained imaging in the K band (~I-band rest frame) of the z=1.786 radio galaxy 3C 294 with the 36-element curvature-sensing adaptive optics system Hokupa`a and the Canada-France-Hawaii Telescope. At a resolution of < ~0.15, the galaxy is seen as a group of small but resolved knots distributed over a roughly triangular region ~1.4 across. The interpretation of the structure depends on the location of the nucleus, as indicated by the compact radio core. Its position is uncertain by > ~0.5 (2-sigma) because of uncertainties in the optical astrometry, but our best estimate places it at or near the southern apex of the distribution. If this location is correct, the most likely interpretation is that of a hidden quasar nucleus illuminating dusty infalling dwarf-galaxy-like clumps having characteristic sizes of ~1.5 kpc.