Heat oil in a kadai add Onions , chilli and cashews saute for 2 minutes.
Add tomatoes also saute for another 2 minutes.Keep it aside.
In a small kadai put grated coconut and fry for 2 minutes
Add chilli powder,coriander powder and turmeric powder saute for 2 minutes
When coconut turns brown remove from fire.
After 5 minutes we can grind this mix with a mixer.
Add this ground mix to cashew tomato mix and boil for 5 minutes.
Add 1 cup water and boil for 2 minutes.
When gravy becomes thick we can switch of the gas.
Now cashew tomato curry is ready to serve.