• Wash and chop coconut into small pieces.

Classic Coconut Chutney

• In a grinder jar of your mixer grinder or a food processor, add roasted peanuts, green chilli, ginger, coconut and salt, grind it till it looks like fine shredded mixture.
• Add 150 ml milk and grind the mixture to a smooth paste. Don't over process because oil from coconut may get separated, 2 minutes is a good enough time.
• Now to prepare tempering take a small tempering/tadka pan and heat up the oil.
• Add mustard seeds and chana dal to heated oil and cook on low heat till chana dal turns slightly brown. Add curry leaves, switch off the heat and pour this tempering over chutney.
• Serve this coconut with Idli, dosa or any other south Indian tiffin item.

Hotel Style Coconut Chutney Method

• Soak 3 tablespoons raw peanuts for 20-30 minutes
  
• In a small grinder jar add coconut(chopped), Soaked peanuts, roasted chana dal, green chilli, salt to taste.
  
• Add 1/4cup water and grind into a smooth paste.
  
• Heat one tablespoon oil and hing and mustard seeds
  
• Add chana dal, broken whole red chillies, curry leaves stir over medium heat for a minute pour this over coconut mixture.
  
• Hotel style coconut peanut chutney is ready to serve.