Heat a wok/kadai and add 2 tablespoon oil. When the oil heats, add ¾ of the finely chopped onion and fry till the onion turns pinkish.
Now add chopped garlic and stir till the raw smell of garlic goes away.
Add the spices like coriander seeds, cumin seeds, peppercorns, cloves and dry red chilies and fry till they turn brownish on low heat. Do not burn.
Add grated coconut and roast till it turns brownish and switch of the gas. Add turmeric powder and tamarind ball, stir, and let it cool down.
After cooling, grind the above-mentioned grated coconut mixture by adding 1 and ½ cups water to make a thin paste. Add more water if needed, but do not make the gravy very watery. Keep it aside after grinding.
Now heat the same kadai which will be empty and add 2 tablespoon oil.
To this add onion and fry till it turns pinkish. Add chopped tomato and fry till tomato turns mushy.
Now add diced capsicum and stir fry for 10 Minutes or till capsicum softens.
Now add the gravy from the mixer and stir well.
Add cashewnuts to the gravy in the kadai.
Stir and simmer for 10 Minutes. Adjust salt to taste.
Garnish with chopped coriander leaves.