Heat 1 tsp of oil in a frying pan. Add in red chili, gram dal, urad dal and coriander seeds.
Start frying all the ingredients under low-medium flame. Roast until dals are brown. Roasting under low-medium flame is very important.
Once the dals are brown, add in curry leaves and asafoetida. Roast everything together for few seconds and switch off the stove.
Take fresh grated coconut in a mixie jar. Add in roasted ingredients into the mixie jar
Add in salt and tamarind as per your taste. Use less salt if you want to serve this chutney with dosa or idli.
Grind until fine by adding required water.
Transfer the ground chutney into a bowl. Add in finely chopped onion and give a quick mix.
Next transfer it into a serving bowl.
Temper it with oil, red chili, curry leaves and mustard seeds. You can add crushed garlic while tempering. This chutney tastes good with rice or dosa or idli.