Soak good amount of tamarind in hot water for 10 minutes and after you remove the pulp, place it in a cup.
Grind coriander seeds and red chillies into a fine powder. Heat about 5-6 tsps of oil in a pan and add mustard seeds, urad dal, methi seeds, channa dal, hing, curry leaves, red chilli and groundnuts and fry them all till they turn golden brown.
Put red chilli powder (according to taste) and 1/2 spoon of turmeric powder and tamarind water into it. Also add salt (according to taste) with the grinded powder. Allow it to cook when it becomes thick like chutney, remove from flame and mix it with rice to serve Puliyodarai.