Slit green chillies, without removing the crowns.
Remove the seeds if you want.
Slice onion.
Heat a thick bottom kadai, roast peanuts.
Roast them till they start changing color.
Add fresh coconut pieces.
Once they start changing their color, add sesame seeds.
As they start spluttering switch off the flame and add red chillies.
Let all of them cool completely.
Transfer all of them in a blender jar and make smooth paste of it.
This is called salan paste.
Now make Mirchi Ka Salan.
Saute the slit chillies in hot for 2 to 3 minutes, so that they would become soft.
Keep them aside.
Heat oil in a kadai, add mustard seeds, cumin seeds, and red chilli.
When they start spluttering add onions and fry them till they become translucent.
Add ginger garlic paste to it and fry it till the raw smell goes off.
Add turmeric powder, salt, red chilli powder and coriander powder. Mix well.
Saute them till they oil separates.
Add the above made salan paste.
Combine it also well and allow it to cook for a minute while keep stirring.
This would make the oil separates and all masalas get cooked well.
Add a cup of water to the curry and check the salt.
Allow this to cook for a minute.
Add green chillies, curd and a little water.
Allow the curry to cook for another 5 to 10 minutes.
Cook the curry in low flame only and see that it should not burn in the bottom.
Serve mirchi ka salan with bagara rice or any flavored rice of your choice.