Lightly roast split chickpeas in a pan. You don't need to add oil or butter. Grind to a fine powder in a blender.
Add freshly grated coconut to the blender. If you buy frozen coconut, then take 1 cup of frozen grated coconut in a microwave-safe dish and zap for 30 seconds. This will soften the coconut and you may now transfer this to the blender.
To this, add chilies, coriander and 1/2 cup of water.
Grind all this together in the blender for about 30 seconds. Intermittently stir contents to ensure uniform blending. Grind again for about 30 seconds. Now add 1/2 cup yogurt in a blender and grind the mixture for about 15 seconds. Ensure the mixture is still thick, somewhat grainy, but not overly so.
Set aside in a serving bowl. Add salt and lightly stir.
Add olive oil in saucepan and place on medium heat. When the oil is hot add mustard seeds, red chili, and hing. In a few seconds, the mustard seeds will pop. Add curry leaves and turn off the stove. Add as a garnish on to the coconut chutney.