In a blender or food processor, grind roasted peanuts, dried red chilies, chopped onion, garlic, ginger, tamarind paste, and salt with a little water until smooth.
Transfer the peanut mixture to a bowl.
Heat oil in a pan and add mustard seeds and curry leaves.
Once the mustard seeds start to splutter, add the tempering to the peanut chutney and mix well.
Serve the peanut chutney with dosa, idli, or any South Indian dish of your choice.