Take all chutney ingredients in a blender bowl and blend it, make a smooth paste using 1 cup water or as required. Add 2-3 ice cubes while grinding it will make chutney smooth.
Remove the chutney in a serving bowl.
Now heat the oil in a small pan, add mustard seeds, urad dal, when crackling add hing, red chilli,, curry leaves, chili powder and saut for few seconds.
Now pour the tempering over the mixture, and mix well.
Red Chilli Coconut Chutney is ready to serve with Idli, Dosa, Upma or any south Indian breakfast.