Heat 1 tsp oil in a pan. Fry green chilies, dal & garlic until the dal turns golden.
Remove and set aside. You can also add garlic directly to the chutney jar without frying.
Add peanuts & fry on a medium flame until golden and aromatic. Not only the skin of the peanuts, but also the nut has to turn slightly golden to bring out the aroma.
Add cumin to the hot peanuts. You can also do dry roasting of peanuts without oil. Keep aside to cool.
Transfer all these to a blender jar along with garlic, salt and ½ to ¾ cup water.
If using tamarind, soak it in some water and filter the tamarind soaked water to the jar.
Blend to smooth peanut chutney. I do not use tamarind for peanut chutney.
Taste it and add more salt and chili if needed.
Add 1 teaspoon oil to the hot pan.
Next add mustard, red chili, garlic and curry leaves. Fry till the leaves turn crisp.
Lastly add hing. Turn off the heat and pour this over the groundnut chutney.
Serve peanut chutney with idli or dosa.