Mix red chilli powder, Kashmiri chilli powder and turmeric powder with 2 tbsp of water. Add the fish pieces, chilli and turmeric mix, kudampuli, chopped ginger and salt with 2 cups of water in the clay pot, cover and bring to a boil.
Next add the grated coconut, and let cook for another 5 to 7 minutes or until the gravy thickens.
For the tempering, heat a tbsp of oil, add the mustard and the fenugreek seeds.
Once the mustard seeds start to splutter, add the curry leaves and the chopped shallots; saute till the shallots turn brown.
Add the tempering to the fish curry before taking off the stove.