In a pan add a tea spoon of oil, urad dal/split black gram, red chilly and fry them in medium heat. Once the urad dal changes color add horse gram and fry them till the horse grams puff up.
In a mixer, blend the fried items of step 1 along with grated coconut, tamarind, salt and water. It should be ground coarsely not to a fine paste.
In a seasoning pan add oil, mustard seeds, urad dal and red chilly. When mustard seeds splutter add it to the chutney. Tampering is optional for this chutney.