grind together coconut, fried gram, red chilli and salt adding little water to a medium coarse paste.
add more water to make it to a thin consistency.
For tempering: heat oil and crackle mustard seeds.
further, add broken red chilli and curry leaves. fry till crisp.
lastly, add sliced onions, salt for frying and fry till reddish brown.
add the tempering to the chutney and mix once.
serve fresh with appam, dosa or idli.