Heat up the 10ml peanut oil in the pan, and add grated coconut, red chillies, and roast them for 3-4 minutes on slow to medium heat. Take them out of pan and keep them aside.
Now in the same pan heat up 10 ml of oil and add curry leaves and garlic and ginger, followed by onion and tomatoes, green chillies, coriander leaves and poppy seeds. Cook all of these for 6-7 minutes over slow heat till tomatoes start to look pulpy.
Now add turmeric powder, kashmiri chilli powder, garam masala powder, black peppercorn powder and salt to taste. Stir together everything and cook for a minute. Take the pan off the heat.
Let the mix cool a bit and then add coconut chilli mix and this cooked masala in same blender along with ½ cup of water and grind to a smooth paste.
Use this kolhapuri masala as required in any recipe.