Take a wok and heat it on a medium flame on your gas stove. When it is hot enough, put 2 tbsp of white oil in it. When the oil heats up, put ¼ tsp of mustard seeds along with ½ tsp of split black lentil (urad dal) in it. Fry it for just a couple of minutes until the urad dal turns golden brown in color. (Pro tip: You can use any type of white oil you have at home to make the chutney).
Now, add ¼ tsp of asafetida powder to the spices in the oil. Stir it to mix it nicely.
Then, add 1 piece of a medium-sized onion (sliced finely), 2 pieces of fresh green chilies (cut into small pieces), 1 piece of fresh ginger of about ¼-inch in size (deskinned and cut roughly), and 2 garlic cloves (deskinned and cut into small pieces) in the oil. Sauté the ingredients for about 2 to 3 minutes until the onion becomes soft and turns translucent. At this point, add 1 piece of tamarind about 1-inch in size. (Pro tip: You can add a few more pieces of green chilies if you want the capsicum chutney to be a bit spicier).
Stir it to mix it with the other ingredients and then add 2 pieces of fresh capsicum (deseeded and cut into thin slices) along with a little bit of regular table salt to taste. Stir them all once again to mix everything nicely and let them cook for about 2 to 3 minutes until everything is tender.
At this point, add ½ cup of fresh coriander leaves to the content in the wok. Stir it and mix nicely and let it cook for another minute or so. When everything is cooked nicely and gets reduced, turn the flame of your gas stove off. Let the pan sit for a while for the ingredients to cool down completely at room temperature. (Pro tip: You may transfer the ingredients to a separate plate if you want to speed up the cooling process).
When the ingredients have cooled down completely, transfer them from the wok or the plate to a clean grinder. Add ¼ cup of water to it.
Grind it to a fine paste. Check the consistency of the paste. If you think it is too thick and you want something less thick, add some more water and blend it again. (Pro tip: However, do not add too much water at once. If you add excess water, you will not be able to take it back. Therefore, add water gradually and blend it after every time you add water to it, and make sure you do it in short intervals. This will prevent heat buildup which might eventually affect the color of the chutney).
If you are happy with the consistency, transfer the paste to a bowl and keep it aside.
To prepare the tempering ingredients for the chutney, take a tadka pan and heat it on medium flame. When it is hot enough, put 1 tbsp of white oil in it and then add ½ tsp of mustard seeds in it when the oil heats up. When the mustard seeds stop spluttering, add ½ tsp of split black lentil (urad dal) to the oil. Stir the ingredients for about half a minute to cook them nicely till the urad dal turns golden in color. Finally, add 6 to 8 pieces of fresh curry leaves to the oil and turn the flame of your gas stove off. (Pro tip: Be careful about the mustard seeds which might crackle and sprinkle hot oil).
Transfer the tempering ingredients immediately to the bowl containing the capsicum paste. Mix it nicely.
Your tasty homemade capsicum chutney is now ready to be served with idli, dosa, and a range of other dishes and snack items.