Step 1: To prepare the squash: in a large skillet over medium high heat, add the squash cubes and the next 6 ingredients (-chili pepper) and then add the water and bring to a boil. Reduce heat to low and cover; cook, stirring occasionally for 15 minutes or until squash is tender.
Step 2: While the squash is cooking, in a small skillet over medium heat add the coconut and stir, but as this burns quickly don't leave it to cook by itself, but keep stirring until is is toasted (5 minutes) and then transfer to a plate to cool. Wipe pan clean to use again.
Step 3: When the squash is about done stir in coconut milk and the toasted coconut and then bring it back to a boil and then remove from heat. Transfer to a serving bowl.
Step 4: To make the tarka: in a small skillet (or just use the one you toasted the coconut in), over medium high heat heat the oil and then add the mustard seeds allowing them to pop for a few seconds and then add the cumin seeds. After a few seconds add eh curry leaves, swirling the pan . After a few seconds add the shallot and reduce heat to medium low and stir frequently unit shallot is browned (a few minutes). Pour mixture over the squash mixture.
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