1 cup fresh grated coconut, 2 tablespoons roasted chana dal (Bengal gram), green chillies, ginger, 1/2 teaspoon tamarind paste, salt to taste and water. For tempering, you will need oil, mustard seeds, urad dal (black gram), curry leaves, dried red chilli and hing (asafoetida).
In a blender, add the grated coconut, roasted chana dal, green chilies, ginger, tamarind paste, and salt. Add a little water and blend to a smooth paste. Add more water if needed to achieve the desired consistency.
Taste the chutney and adjust the salt or tamarind as needed. Blend again if you made any adjustments.
In a small pan, heat the oil over medium heat. Once the oil is hot, add the mustard seeds. Let them crackle. Add the urad dal and fry until golden brown. Break the dried red chili and add it to the pan along with the curry leaves and hing. Fry for a few seconds.
Pour the tempering mixture over the prepared chutney and mix well. Serve the coconut chutney with South Indian dishes like idli, dosa, vada, or uttapam.
Freshly grated coconut gives the best flavor, but if unavailable, frozen grated coconut can be used. Adjust the water to get your desired consistency. Some prefer a thick chutney, while others like it thinner.