Blend the curd with green chillies, grated coconut and a little water. (Adding the grated coconut is optional; it enhances the flavor and also helps to thicken the curry). Make sure you only add enough water to loosen up the curd or the gravy will become runny.
In a pot, heat oil and crackle mustard seeds. Then add the fenugreek seeds, dry red chilli and curry leaves.
Add the shallots, ginger and garlic and sauté till golden brown.
Add turmeric powder and mix well.
Remove from heat and pour the beaten curd mixture. Stir well and place back on low heat. (If the pan is too hot, the curd will split).
Season with salt. Add more water if necessary. Stir well and continue cooking on low flame till you can notice small bubbles at the outer rim. Remove from heat immediately. It is important not to let the curd split or the dish is ruined.
Serve hot with steamed rice.