Heat peanut oil in a pan, then sauté red chilies, cumin seeds, onion, and garlic until the onion becomes translucent.
Add tamarind, chopped tomatoes, and salt into the pan. Continue sautéing until the tomatoes soften and turn translucent.
Add the roasted peanuts to the mixture, stir well, and let it cool.
Transfer the cooled mixture to a blender and grind once. Add 1/2 cup of water and grind again to achieve a smooth consistency. Repeat with another 1/2 cup of water.
Transfer the blended chutney into a serving bowl and add water, adjusting for the desired texture.
Heat coconut oil in a small pan. Splutter mustard seeds, urad dal, red chili, and curry leaves for tempering.
Add the tempering to the chutney, mix, and serve with your favorite dish.