Dry roast the peanuts, once they cool down, rub them in between your palms to de-skin them, de-skinning is optional.
To a small, add ½ tbsp oil, once hot add the chopped green chilies, garlic and cumin seeds, fry for a minute or 2.
To a blender jar, add the fried chili-garlic-cumin(without oil), roasted peanuts, chopped coconut, tamarind, salt and little water and blend into a smooth paste. Add water as required, chutney should not be of too thick.
Take out the ground chutney to a bowl.
To the same pan used for frying the chili-garlic-cumin, add ½ tbsp oil, once hot add the ingredients mentioned under tadka/seasoning. Fry for a minute or until dal is light brown and pour the tadka over the chutney and serve with dosa/idli/vada etc.