In a pan add 2 tsp oil and add the urad dal.
Roast them till they become golden brown.
Switch off the flame and add the green chili.
Once it is cool add it to the mixie along with coconut and salt.
Grind it into a smooth paste. Add water while grinding.
Once done transfer to a bowl and add a little water to get the right consistency.
In a pan add 1 tsp oil and add the mustard seeds and curry leaves.
Once the mustard splutters switch off the flame and add it to the chutney.
Coconut Chutney is ready to serve.
This chutney goes well with idli, dosai, pongal, and chapati too.