For preparing mushroom curry, cook mushrooms, coriander powder, chilly powder, turmeric powder, shallots, tomato and salt with a little water.
Fry coconut and pepper powder in oil. Grind it to make a fine paste.
Add the coconut paste to the cooking mixture. Add little water if required and boil it.
Then add in the chicken masala. Mix well and remove it from the flame.
Splutter mustard seeds, dry red chillies and curry leaves in oil. Add this to the gravy and mix.
Mushroom curry is ready. Serve hot with rice, chapathi, etc.