Heat oil in a pan. On medium heat, fry urad dal and chana dal.
Add peanuts and fry on low to medium heat till the peanuts lose all the rawness.
Add onions and garlic and continue frying on medium heat till the onions turn translucent.
Add dry red chillies and tamarind pulp and fry for 1-2 minutes.
Add salt and turmeric powder and fry on low heat for another 1-2 minutes.
Remove from heat and let the mixture cool.
In a mixie jar, add grated coconut and the fried and cooled mixture.
Grind. Add water and grind to a fine paste.
Transfer to a serving bowl.
For the tempering, heat oil in a pan. On medium heat, fry urad dal, curry leaves, dry red chillies, chopped coriander leaves and asafoetida.
Fry till the urad dal changes colour to light brown.
Add this tempering mix to the prepared chutney.
Serve with idli/dosa.