Heat some oil in a pan and, once warm, add the whole peanuts.
Gently fry the peanuts on a low flame until they turn light golden brown, then remove them from the pan and set them aside to cool down.
Next, if necessary, add a little more oil and heat it up once more.
Add the green chili, garlic, curry leaves, shallots and fry them on a low to medium flame until soft and cooked. Once ready, remove them from the pan, and set them aside with the peanuts.
Lastly, add chana dal to the pan and fry it until golden brown as well. Once this is ready, set it aside as well.
Allow the ingredients to cool down, then add to a blender jar together with a piece of seedless tamarind pulp, and blend until smooth. During the process, you may need to add a little water; do so a little at a time, to avoid making it too watery, which could result in the peanut chutney not blending smoothly.
Set the smooth groundnut chutney in a bowl and prepare the tadka.
Heat oil in a pan and add mustard seeds and cumin seeds.
Once these have splattered, add urad dal and after 10 seconds, add the hing [asafoetida], whole dry red chilli and curry leaves.
As soon as these are fragrant, add the tempering on top of the peanut chutney and mix.
If serving to guests, keep some of the tempering aside to add on top of the bowl as a garnish.
Enjoy with idli, dosa, uttapam, vada, and pakoras, although you may see peanut chutney served on toast, with plain steamed rice, and vegetable fritters.