Take a blender jar and add coconut, ginger, green chilly, shallots, curry leaves, salt and water. Blend until you get a smooth chutney. Add more water if needed to get the desired consistency. Take out the chutney in a serving bowl.
Take all the ingredients for seasoning and keep it ready.
Heat oil in a tadka pan over medium heat. Add mustard seeds and allow them to pop. Then add dried red chilly, chopped shallots and curry leaves. When the shallots turn light brown in colour, turn off the flame and pour the tadka over the chutney and stir in.