Onion chutney is a delicious sweet-and-sour chutney used as a side dish for many South Indian snacks and breakfast items. It is one of the components used in Masala Dosa assembly.
In a shallow pan, heat the oil. Add the chana dal, stir till the dal is roasted.
Add the onions, stir fry them till they become transparent and the edges turn golden brown. Turn off the heat and let them cool for a few minutes.
When cooled, blend together the onions, coconut, chillies, tamarind, salt till it makes a smooth paste. Add a few teaspoons of water if necessary.
