Firstly, cut capsicums and green chilies into small pieces.
Further, heat oil in a pan and add cumin seeds and fry for a few seconds.
Additionally, add capsicums and fry till slightly soft. Don’t overcook or over-fry.
Now switch off the flame and wait for 10-15 mins to cool down completely.
After that, in a mixer grinder, add coconut, ginger, garlic, green chilies, salt, and fried capsicums.
Further, grind this mixture to a coarse paste.
Add water and lemon juice and grind once again.
To make tadka, heat oil in a small pan. once oil is hot, add curry leaves, mustard seeds, cumin seeds, and a pinch of hing. Fry for a few seconds.
Further, mix half of the above tadka in the chutney and grind it once again.
Remove this chutney to a bowl and add the remaining tadka and mix well all the ingredients.
Finally, serve green coconut chutney or capsicum coconut chutney with idli, dosa, uttapam, vada, aloo bonda, or any South Indian Dish.