This is a a perfect side dish for Arisi upuma and if done properly it can even be stored for two years . My grand mother used to make this in bulk quantities and we remember grinding for this in wet grinder. I learnt this from my mother . i am posting the method we follow in our house.
Green chilli – 150 gm
Tamarind – a big lemon size
Oil – 2 tbls
Soak tamarind in little water . When the chillies are cooked ,cool it and grind with tamarind. Remove the seeds from tamarind . Grind these to a smooth paste . Now add oil in a kadai and put the paste and sauté well adding little oil .