Take all the ingredients in a pan on medium heat and saute it until it turns lightly brown. Once browned, specially the onions need to turn brown as it will add so much flavor, turn off the heat. Let it cool slightly. Grind it in a blender with ¼ cup water to make smooth paste.
Heat some oil in pan. Keep peppers whole. Make slits in the peppers and saute them for few minutes on both sides until they look slightly soft and cooked. It won’t take more than 5-7 minutes for this step. Remove peppers on the side in a plate.
In same oil left out after frying peppers, heat it up. Once hot, add mustard seeds and cumind seeds, let them sizzle. Once it sizzles, add the curry leaves, asafetida, bay leaf and onions.
Saute until onion softens up and becomes translucent.
Add the ground paste we made earlier.
Start adding spices one by one followed by salt, tamarind paste, jaggery. Mix it well.
Add some water about ¼ cup to make some gravy.
Let it simmer for few minutes and add the peppers. Once the gravy has thickened up a little bit, turn off the heat.
Garnish with cilantro, freshly shredded coconut, sesame seeds. Serve it hot/warm with rice, biryani or rotis.