Heat a pan and add raw peanuts. Dry roast the peanuts till they turn aromatic. Set roasted peanuts aside.
Heat 1 tsp oil in the same pan. Add chopped green chillies, garlic and ginger. Saute for few seconds. Keep aside.
Into a mixer jar, add fresh, grated coconut.
Next, add roasted peanuts.
Add roasted chana dal.
Add roasted chillies, ginger and garlic.
Add coriander leaves.
Add tamarind and salt.
Add water. Initially add half a cup of water. Add more water gradually as required while grinding the chutney.
The chutney should have runny consistency. It should not be thick nor too thin.
Fortempering, heat coconut oil in a tadka pan.
Add mustard seeds, udad dal, dry red chilly and few curry leaves.
When the ingredients start sizzling, pour the tempering into the chutney.
Neer chutney is ready to be served. Pour over idlis and serve.