Once hot, add the green chilies to the oil. The chilies will start sputtering. Please cover the kadhai with a lid. Turn the flame to low
Let the chilies cook in the oil as the surface turns white and flaky.
Add the tamarind piece and let it cook for a bit
Turn off the flame and let it cool
Once cooled, transfer the mixture to a blender
Blend well into a smooth paste while adding about two tbsp of water. You will see the grains of the green chilli in the final paste. That is fine, and that is what will lend flavour to the chutney.
After blending, remove the chutney into a vessel
For tempering, add mustard seeds to hot oil in a kadhai. Once the mustard seeds crackle, turn off the heat and add the tempering to the chutney.
Green Chilly Chutney is ready! If you are storing the chutney for a few days, add two tbsp of oil to the prepared chutney before storing it in the fridge. This will help bring down the stinging spice levels of green chilies.