Place the grated coconut, sour cream, and salt in a blender, and blend to a smooth paste. Set aside.
Heat the oil in a small frying pan over medium heat, add the mustard seeds and crumbled chiles, and cover. When the mustard seeds stop popping, lower the heat and sauté the spices for 1 to 2 minutes. Remove from heat and set aside to cool.
Gently stir yoghurt into coconut mixture. Stir spices into the coconut mixture. Serve at room temperature or chilled. Refrigerate leftovers.
Makes about 2 cups.
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