Grind coriander leaves, green chillies, five to six garlic cloves, half the ginger, two to three peppercorns, cloves and half inch cinnamon with a little water into a fine paste.
Place mutton pieces in a bowl, add ground paste, salt, half teaspoon turmeric powder and mix well. Set aside to marinate for two hours in the refrigerator.
Heat one tablespoon oil in a large non-stick pan. Add one chopped onion and sauté till it turns translucent.
Add the marinated mutton and sauté on high heat. Add two cups of water, mix and simmer for forty-five minutes. Strain the stock and set aside.
Heat one tablespoon oil in another non-stick pan. Add the remaining cinnamon, remaining peppercorns, star anise, coriander seeds, cumin seeds, cloves, mace, sesame seeds, stone flower, poppy seeds and fennel seeds. Mix well and add one chopped onion. Mix and sauté till the onion turns translucent.
Add coconut, mix and sauté on low heat till it turns light brown.
Add bay leaf and mix. Add dried coconut, mix and sauté for two to three minutes. Remove from heat and cool down the mixture to room temperature.
Heat remaining oil in a pressure cooker. Add remaining garlic cloves, mix and sauté.
Add remaining onions and sauté till they turn light brown.
Grind cooled coconut mixture into a thick and fine paste with little water.
Add ground coconut paste to the cooker, mix and sauté for one to two minutes.
Add remaining turmeric powder, garam masala powder, Kolhapuri masala, red chilli powder and salt and mix well.
Add mutton pieces and mix well. Add half cup of strained stock and mix. Cover and cook on low heat for four to five minutes or till the mixture becomes dry.