Soak 3/4 cup of coconut in 3/4 cup of warm water for 30 minutes and after 30 minutes, blend, extract the first milk from it. Add 2 cups of water and blend again. Then extract the coconut milk once more.
Keep both coconut milk aside (separately) till you prepare the gravy.
For the masala
Add 1 teaspoon of oil in a pan. Add grated coconut and roast till it becomes to nice brown colour. It will take about 4-5 minutes. Transfer to a plate once done.
To the same pan, add another teaspoon of oil. Roast coriander seeds and dry red chilli. When both are almost roasted, add rest of the ingredients(cumin seeds, Mustard seeds, fenugreek seeds, cinnamon stick, black pepper and cloves) one by one and roast it again. Stir continuously to avoid burning.
When all the ingredients are roasted well, turn off the heat and add turmeric powder. Mix it well. The heat in the pan is sufficient for the turmeric powder.
Transfer to a plate and allow the ingredients to cool to room temperature.
Meanwhile, soak tamarind in 1/4 cup of water.
Chop onion, ginger and garlic.
By now, the roasted ingredients would have cooled well.
Add everything to a mixie jar or blender and make a paste out of it. Add 1/4-1/2 cup of the coconut milk (extracted second time) to help in grinding process. It will take 5 minutes approx. to get the desired consistency.
Keep this paste aside.
For the gravy
Heat 3 tablespoons of oil in a pan.
Add finely chopped onion and saute till it becomes soft and translucent. It will take 5-7 minutes.
Add the ground paste. Mix well. Use little quantity of water to rinse the mixie jar and pour it to the pan. Saute and let it cook for 3 minutes.
Add the chicken pieces. Saute for 2 minutes and pour the remaining coconut milk and salt to taste. Add 1/2 cup of water and mix again. Allow the dish to cook in low flame till the chicken is almost done.
When the chicken is almost down, add the coconut milk (first extracted milk) and a spring of curry leaves.
Just boil it for 1 minute and turn the flame off. I garnished it with the a spring of fried curry leaves.
Serve hot with rice or roti.
The colour of the gravy depends upon the red chilli you use.