Take a wok and heat it on a low flame on your gas stove. When it is hot enough, put 2 tbsp of white oil in it. Add about 30 pieces of cashew nuts to it when the oil is hot. Stir the cashew nuts continuously for about 2 to 3 minutes. (Pro tip: You can use any type of white oil that you use at home).
When the color of the cashew nuts turns golden brown, transfer them to a plate and set aside.
Now, in the same oil put 1 whole piece of fresh green chili, slit in the middle. Also, add 1 whole piece of Kashmiri dry red chili, 1 small piece of fresh and deskinned ginger of about ½-inch size, 2 cloves of deskinned garlic, and 2 to 3 small pieces of onions, either whole or roughly diced to the wok. (Pro tip: You may increase the number of green chilies according to your preference. However, do not put lots of chilies as that will affect the taste and flavor of the cashew nuts).
Stir them as well for about a minute until the onions and chilies are cooked nicely. Check that they change color and the onions turn translucent and soft. Transfer them to the plate and set aside.
Now, in the same wok and remaining oil, put 1 cup of fresh coconut, diced roughly.
Stir them for about a minute or two until you see them start changing their color. Transfer the fried coconut pieces to the plate as well and set it aside so that all the ingredients cool off completely at room temperature. (Pro tip: Do not overcook or over-fry the coconut pieces as it will change the taste of the chutney).
Now, when the ingredients in the plate are cool enough, transfer them to a clean grinder. Then, add ½ tsp of rock sugar (mishri) to the ingredients in the grinder. Finally, pour ¼ cup of water into the grinder before grinding everything to a fine paste and transferring it to a bowl.
Now, for tempering the chutney, put 1 tbsp of white oil in the wok. When the oil is hot, put ½ tsp of cumin seeds in it. Let it cook and start to crackle. When it does, put 5 to 6 pieces of fresh mint (pudina) leaves in the wok.
Stir them for half a minute or so and transfer the ingredients immediately to the cashew nut paste in the bowl.
Finally, mix everything nicely and your tasty homemade cashew nut chutney is now ready to serve with a variety of dishes.