Heat a kadai and add oil. Add the chana dal and urad dal and roast on a low flame till golden. Once the lentils are golden, add the cumin seeds and the red chillies. Saute briefly for a few seconds. Add the shallots and garlic and cook well till the shallots are nicely caramelized. It’s important that the shallots cook well as the flavor of roasted shallots is what makes this chutney very delicious. Once the shallots and garlic are roasted, add the coconut, salt, and tamarind. Cook for a minute. Remove from heat and set aside to cool.
Add the cooled ingredients to a mixie and grind to a paste. Add little water while grinding. Remove the chutney from the mixie to a serving bowl. Set aside.
Heat a tempering kadai and add oil. When the oil is hot, add the urad dal, mustard seeds, curry leaves, and dried red chillies. Let the mustard seeds crackle. Add the tempering to the chutney. Just before serving, mix the tempering into the chutney.
Serve with South Indian Tiffin items like Idli and Dosai.