There are many variations to the coconut chutney and each variation is designed to suit a particular dish it is eaten with. Traditionally the coconut chutney is a must have side dish with idli, vada, and dosa. But it can also be eaten with rice.
1/2 Fresh coconut (grated or cut into small pieces)
some fresh cilantro
a few fresh curry leaves
3-4 dry red chillies
1 fresh green jalapeno
1/4 cup peanuts (or Roasted dal)
1 tsp cumin seeds
1 tsp mustard seeds
a little fenugreek seeds
1 tsp oil
Wash and cut half a fresh coconut and set aside. In a pan roast the peanuts until lightly brown and set aside. Add a little oil to the pan and add a touch of asafoetida, turmeric powder, red chillies, cumin seeds, mustard seeds, and fenugreek. Once the mustard seeds start cracking, add fresh curry leaves and remove from stove after a few seconds. Remove only the fried red chilies and together with the coconut, roasted peanuts, cilantro, jalapeno (optional) and some tamarind (juice, paste or fresh soaked in a little water to soften it) blend in a wet grinder until all are smoothly blended into almost a paste. A tsp sugar can be added as well. Remove from blender and mix in the remaining fried seasoning.
The same recipe can be used without peanuts to make just coconut chutney and eaten with rice.