First add peanuts and dry roast it. I had deskinned peanuts so used it as such. If you have peanuts with skin then roast until crisp and remove skin.
Roast until golden as shown.
Transfer to a plate and set aside to cool.
Now add a teaspoon of oil then add onion, red chillies and garlic. Saute until golden as shown below.
Add tamarind and saute for a minute then switch off
Transfer to a plate and set aside.
Cool down completely then transfer to a mixer along with salt and little say 1/4 cup water. You cna add more water later.
Grind it smooth and creamy.
Transfer to a bowl, add water and adjust consistency.
It should be slightly thin so add water accordingly.
To make the tadka : Heat oil then add mustard seeds let it crackle then add urad dal let it become golden then add curry leaves and hing. Swirl and switch off.
Transfer tadka to chutney.
Mix well. Peanut Chutney ready.