Grind the paste using 1/2 cup water. Heat oil, add mustard seeds, whole chiles, allow to splutter. Add asafetida and curry leaves. Stir. Add capsicums, stir fry for 3-4 minutes. Add ground paste, jaggery, salt, turmeric powder and peanuts.
Stir and add 1/4 cup water. Boil and simmer for 7-8 minutes. Gravy must be thick. Serve hot with roti or rice.
Karnataka region