dry roast peanuts on a low flame. fry them till golden brown colour, do not burn them. keep it aside and cool them.

remove the skin of the peanuts.

in a blender, add coconut (fresh or desiccated), tamarind, salt and green chillies. also add the roasted peanuts. add warm water to the blender.

grind the mixture into a smooth paste. add water as in required to make it a smooth paste.

check the salt and add more if required. transfer the grounded paste to container.

now prepare the seasoning with mustard seeds, urad dal, red chillies and some curry leaves.

add the seasoning to the grounded paste and mix it well.

serve peanut chutney with idli, dosa, medu vada, uttapam or pakoras.