Peel and chop the onions as little thick medium sized pieces, keep aside.
Wash and chop the tomatoes in medium sized pieces, keep aside along with the onions.
In a food processor, grind together the grated coconut, cumin seeds, green chilies and garlic to a smooth paste, you may add a little water if needed (if adding water, use the water from the 2.5 cups water as recommended in the ingredients, to avoid adding any extra water).
Heat oil in a pan and add the mustard seeds.
When the mustard seeds splutter, add the broken dry red chilies and curry leaves, fry for a few seconds.
Add the chopped onions and tomatoes to the pan, saute for about 2 minutes.
Add the salt and stir the contents very well and cook in low heat for another 2 more minutes.
Add the grind coconut mixture to the pan, stir the contents very well, and add the remaining spices - turmeric powder, coriander powder, black peppercorns and red chili powder, mix everything well.
Saute the contents for 2 more minutes.
Add the water to the pan, mix everything well and cook in medium heat until the mixture starts to boil. Once the mixture starts boiling, you can stir everything again and cook in low heat heat for another 1 more minute.
You may add a spoon of oil if desired, stir the contents, serve it hot with rice for lunch or dinner enjoy!