Dry roast peanuts in a frying pan stirring continuously without burning peanuts. When roasted, transfer them to a plate and let them cool.
In the same pan, add 1 tsp of oil. Add 1/2 tablespoon of cumin seeds, green chilies, garlic cloves, and ginger. Saute them for 2 minutes and turn off the flame. Add tamarind and let them cool.
Add all the fried ingredients to a blender, salt, and water.
Blend them into a smooth mixture.
Add 1 tbsp of oil to a pan then add mustard seeds, cumin seeds, urad dal, chana dal, red chilies, and curry leaves. Fry them until dal turns golden.
Add the tempering to the peanut chutney.