For preparing the delicious dish, first clean, wash and cut squid into small squares.
Roast turmeric powder, chilli powder and coriander powder together in a pan without oil.
Mix the roasted masala powders and garam masala with grated coconut (Mix it with hand for better results). Keep this aside.
Heat oil in a pan and splutter mustard seeds. Add sliced shallots, chopped ginger, curry leaves and green chilli. Saute till shallots becomes soft.
Now add squid along with salt and saute for a while. Close it with a lid and keep it on a medium - low flame till squid is done.
Now, add the previously prepared coconut masala and crushed pepper. Mix well, check salt and add more if needed. Cover and keep in a low flame for about 5 to 10 mins. Remove the dish from fire when it is dry. Serve hot with steamed rice.