Clean and chop coconut into small pieces.
In a mixer or food processor, take all the ingredients except onions. Grind to a coarse paste.
Finally, add the onions and just run once. The onions should not get mixed or ground.
Important thing to note in this, is to ensure you don't run the onions to paste. The unique taste in this chutney is the onion chunks present in the chutney.
If you prefer, you can season this with mustard seeds and curry leaves.
Serve this for chapatis.