Firstly, in a pan heat 2 tsp oil. add 2 tbsp urad dal, 2 tbsp chana dal and 3 dried red chilli.
Roast until the chilli puffs up and dal turns golden brown.
Further, add ½ cup of roasted peanuts and roast for a minute.
Also, add 2 tomatoes and saute until the tomato turns soft and mushy.
Cool completely, and transfer to the mixer jar.
Add ½ tsp salt and ½ cup water.
Grind to smooth paste adding water if required.
To prepare the tempering, heat 2 tsp oil. Splutter 1 tsp mustard, ½ tsp urad dal, 1 dried red chilli and a few curry leaves.
Pour the tempering over the chutney and mix well.
Finally, Hotel Style Peanut Chutney is ready to serve with idli and dosa.