Roast the grated coconut till brown.Fry ingredients from 3 to 8 separately in a little ghee. Then grind all the ingredients from 3 to 12 with coconut until very fine.
Put 2 tablespoon ghee in a vessel. Add chopped onions and fry till brown. Then add clean and cut chicken. Saute slowly for 2 minutes.
Add chopped fried onion, salt and butter and fry it on a slow flame for 10 minutes.
Add the ground coconut masala and 1 cup of water and boil it till cooked. Garnish with chopped coriander leaves. Serve with rice.