Peel off the ashgourd skin, scoop out all the seeds and chop it in to 1" length pieces.
Heat a pan adding oil, mustard seeds, black gram lentils and curry leaves. Saute till the mustard seeds crackle. Then add chopped ashgourd pieces, salt, slit green chilly and jaggery. Stir and add 1/2 cup of water and let it cook in medium flame.
Meanwhile put coconut, mustard seeds and red chilly in to mixer/blender and grind it coarsely without adding water. When the ashgourd pieces turn soft, pulpy include the coconut-mustard masala and combine very well. Put off flame after few minutes.
Ashgourd stir fry is ready to serve as a side dish with rice-rasam combo.