Mirchi ka Saalan

This is a popular dish from Hyderabad, usually served with Biriyani.I got this recipe from a friend some years ago.  It is made with medium green chili. You could also make it with bell pepper or jalapeno.  

Ingredients:
10 medium green chilli, cut in half and slit
1 large onion, chopped
1 bay leaf
1/4 C tamarind water
1/4 t brown sugar
2T oil
mustard, urad dal,channa dal and curry leaves, for seasoning
1/4 t turmeric
salt to taste

For paste:
1 T coriander seeds
1/2 t cumin seeds
3 red chili(change according to taste)
1 t sesame seeds
1/2 t poppy seeds
1 T peanuts
1 t grated coconut
1 large clove garlic, chopped
1/2-inch fresh ginger, chopped
1/2 inch cinnamon
1 clove

Method:
1. Boil water in a saucepan, and cook the chili with 1 teaspoon salt for 5 minutes.  Drain and reserve water.
2. Meanwhile, dry roast separately the sesame seeds, poppy seeds and peanuts. Roast the rest of the ingredients with a little oil. Process everything in a food processor with little water to make paste.  Transfer to a bowl.
3. Heat oil in a large pan over medium heat. Add seasoning, and cook onion till golden.  Add turmeric, and chili.  Cook for few minutes.  Add tamarind water and salt. Cook for 2 minutes.
4. Stir in the paste. Add the reserved water as required. Cover and cook on low heat till oil floats on top, stirring occasionaly. 
Serve with biriyani.