Take a pan or kadai and add 1 tsp of ghee to it. Roast the rava in it, till is the color starts changing. Remove it on a plate.
Cut the onion into small pieces, slit the green chili into halves and finely chop the ginger.
Take the grated coconut, add about 1/4 cup of water and give a slight squeeze with your fingers. The coconut milk comes out. Otherwise you can slightly grind it in a mixie. Mix the whole thing along with the remaining water and keep it ready.
In the same pan put the oil. Add the mustard seeds, urad dal and channa dal. Fry it till it becomes slight brown color.
Add the broken cashews and roast it. Also add the dry red chilies and curry leaves.
Then add the chopped onions, ginger and spit green chilies. Saute for just a minute.
Now add the coconut and water combo to the pan. Also add salt as per taste. I have taken only 1.5 cups of water for 1 cup of rava. This gives fluffy upma texture with no lumps.
Allow it to boil, then reduce the flame to simmer (lowest heat setting). Quickly add the roasted rava while constantly stirring.
Add the remaining 1 tsp of ghee and close the pan with a tight lid.
Keep the stove in simmer for around 5 to 6 minutes till all the water is absorbed and the rava is cooked.