Peanut chutney is a wonderful accompaniment to idli or dosai.
1. Soak the tamarind in hot water for ten mins to extract all the juice. Squeeze the tamarind at the end to get as much flavor as possible. When using the extract, try to avoid the small seeds and fibre that collects. You can keep the leftover in the fridge for a couple of days to use it in other dishes.
2. Dry roast the peanuts until the color of the skin starts turing brown. Make sure it does not burn. Some people take out the skin to avoid some bitterness. But I really don't see any difference and I feel it saves a lot trouble. It is also supposed to be healthy to eat with the skin.
3. Roughly chop onions and garlic. Heat a kadai and pour a tsp of oil. Saute onion, red chillies and garlic until the onion cooks. Add the tamarind water and let it boil for a few minutes.
4. Let the mixture above and peanuts cool completely. Transfer it to your mixer and add salt. Add 1/4 cup water and start grinding. Once it grinds to a coarse texture, add 3/4th to 1 cup water little by little to bring it to the consistency you prefer. Transfer it to a bowl.
5. Heat a small kadai and add a tsp of oil. Add the mustard seeds, urad dal, asafatida, curry leaves. Saute until the mustard seeds start to splutter. Transfer it to the chutney when it is done. Mix it and serve with idli or dosai. I feel it tastes even better when it is a little cold.