Soak the shallots in water for 15 mins, the skin will peel off very easily.
Meanwhile, soak the tamarind in 1 cup of water and extract the pulp. Strain and repeat until you extract all the pulp.
Take this thick tamarind extract in a kadai or a pan. Add more water if required along with peeled shallots, turmeric powder, and salt. Bring it to a boil.
When the water starts to boil, simmer and cover with a lid. Cook until the shallots are soft.
While the tamarind water is getting cooked, heat a kadai with 1 teaspoon oil and saute the dry chilies, shallots along coriander seeds and coconut.
Saute until everything is well roasted, transfer to a plate and allow it to cool down.
Once it is cooled down, grind to a smooth paste with enough water.
Now add this to the simmering gravy and mix well.
Let this come to a boil, simmer again for few minutes until the gravy thickens.
Heat a small pan with oil, temper with mustard, curry leaves, and pour it over the simmering gravy.
Let the gravy cook on high for five minutes and remove.
Serve hot with rice.