Heat one tablespoon oil in a non-stick pan, add the coconut, coriander seeds, cumin seeds, fennel seeds, red chillies, cardamom, cloves and cinnamon and sauté on medium heat for four to five minutes.
Cool and grind the above mixture with ginger, garlic, poppy seeds and cashewnuts and sufficient water into a smooth paste.
Heat the remaining oil in another non-stick pan. Add the onion and sauté till golden brown.
Add the curry leaves and sauté. Add the ground paste and sauté for one minute.
Add the tomatoes, turmeric powder, salt and red chilli powder and mix well.
Cook for five to seven minutes or till the oil separates.
Add the mushrooms, peppercorns and sauté for five to six minutes.
Serve hot garnished with coriander leaves.