In a blender add the Coconut along with roasted Channa Dhal, Green Chilli, Tamarind, Cilantro (optional), Ginger, Garlic and required Salt. Grind this mixture to a fine paste and keep aside.
Temper Mustard, Urad Dhal, Asafetida, Shallots, Curry Leaves and Red Chilli in hot Oil and add to the above Chutney.