Peanut Chutney is a creamy, nutty and delicious South Indian condiment recipe made with a few ingredients like roasted peanuts (groundnuts), garlic, onion, red or green chilies ground together and then tempered with some spices. Vegan, Low-carb and can be made gluten-free.

This Andhra Style Peanut & Onion Chutney recipe I am sharing today is a delicious side dish that goes well with breakfast dishes like idli, dosa, uttapam, vada, etc.
Every household has its own recipe. This peanut chutney has onions, garlic, and dry red chilies, and that add a great flavor. Also, there is no addition of coconut in this recipe.
Unlike coconut chutney, this chutney won’t get spoiled or rancid, so this can be easily added to the tiffin box or taken out for day trips.
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What is Peanut Chutney?
Peanut chutney, also known as groundnut chutney or palli chutney is a popular side dish from Andhra Pradesh made from roasted peanuts, onions, garlic, dry red chilies, and a blend of spices. Then a tempering (or tadka) is added to give it a nice flavor.
This chutney is a great side dish for South Indian breakfast dishes like idli, dosa, uttapam, vada, upma, etc.
This Peanut Chutney
- Easy to make and ready in under 15 minutes.
- Uses simple and basic pantry ingredients.
- The perfect accompaniment to idli, dosa, uttapam, medu vada, and more.
- It is vegan, and can be made gluten-free by skipping asafoetida in the tadka.
Ingredients
You will require very few simple ingredients to make this easy Indian peanut onion chutney recipe.
- Peanuts - This is the main ingredient for making this chutney. I like to use raw, unsalted peanuts for this chutney with the skin on. If you don't like the peanut skin, just rub them off when they are dry-roasted. You can also use store-bought unsalted roasted peanuts.
- Onions - I like to use red onions as they are sweeter in taste. You can also use shallots or pearl onions (sambar onions) for this recipe.
- Garlic - use fresh garlic for the best flavor.
- Dried red chilies - Use dried red chilies to add heat to the chutney. If you don't have it, use green chilies or red chili powder instead.
- Split Urad Dal - Adds great texture to the chutney, so don't skip it. If you don't have it, you can substitute it with split chana dal or white sesame seeds.
- Cumin Seeds - add great flavor to the chutney.
- Tamarind - Adds tanginess to the groundnut chutney. You can also use store-bought tamarind paste if that is what you have in hand. You may also substitute it with lemon juice or yogurt.
- Tempering - mustard seeds, urad dal, curry leaves, red chilies, and oil are used for this tempering.
How to Make Peanut Chutney
Dry roast peanuts in a pan on medium flame until golden brown. Remove and let it cool down. You can also roast the peanuts in the air fryer.
In the same pan, heat oil, add cumin (jeera) seeds, split urad dal, and saute until the dal turns light brown.
Add onion/shallots, garlic, dried red chilies and saute until the onions turn soft and light brown. It roughly takes 2-3 minutes. Turn off the heat and cool completely.
In a blender jar, add roasted peanuts, sautéed onion-garlic mixture, tamarind, salt, water, and blend to a coarse or smooth paste as per your preference.
Heat coconut oil in a small pan, add mustard seeds, urad dal, dry red chili, curry leaves, and hing, and saute for a few seconds until the dal turns light brown.
Transfer to a bowl, and add the prepared tempering.
Serve groundnut chutney with Idli, dosa, paniyaram, roti, or as a spread in sandwiches and Enjoy.
Serving Suggestions for Peanut Chutney
- This peanut chutney goes well with South Indian breakfast dishes like idli, dosas, uttapam, medu vada, paniyaram, or chapati.
- This chutney can be served as a side dish with hot steamed rice and homemade ghee, or ven pongal.
- Groundnut chutney can be served as a dipping sauce with Indian snacks like onion pakoda, punugulu, idli fry, or Mysore Bonda.
Storage Suggestions
This peanut chutney stays good for up to 2-3 days in an airtight container in the refrigerator. So this is a great make-ahead chutney dish.
Tip. While grinding, ensure not to add too much water if you want to store it for more days. More moisture means this chutney will spoil faster.
After refrigerating, peanut chutney may get thicker, add little water, and stir when you are ready to serve.
Tips to Make the Best Peanut Chutney
- Peanuts: Always use good quality peanuts. Make sure that peanuts are fresh and have not gone rancid. Ensure peanuts are roasted well until golden brown on medium-low flame otherwise, they will taste raw in the chutney.
- Lentils: Lentils, like roasted split urad dal, adds a nutty aroma and texture to the chutney.
- Consistency: You can make the peanut chutney thick or thin by adjusting the water as per your preference.
- Roasting Garlic: Raw garlic is added in many traditional recipes, but roasting helps remove the pungent smell.
- Tang: Adding tamarind gives a tang to the chutney.
Variations
- No Tamarind: If you dont have tamarind, replace it with little lime juice, yogurt (curd), or amchur powder.
- Peanuts: You can make this chutney with or without peanut skin. Also, if you have store-bought roasted peanuts, use them directly in this recipe.
- No Onions: If you dont want to use onions, replace them with the same quantity of fresh shredded coconut.
- No Garlic: You can skip the garlic and use ½ inch of ginger instead or skip both or replace it with a pinch of hing (asafetida).
- Vegetables: Another variation of using peanuts in chutney with vegetables is Capsicum Peanut Chutney.
Frequently Asked Questions
Yes! Peanuts are rich in protein, healthy fats, and dietary fiber. Hence this chutney is good for health.
Peanuts have a very low glycemic index, do not increase blood sugar levels, and are hence good for diabetic patients.
I don't prefer removing the peanut skins as they are loaded with nutrients. However, if you prefer having them removed, dry roast them on medium-low heat till they have brown spots. Transfer to a wide plate and cool at room temperature. Then rub the peanuts between your palms to peel the skin.
No. Use gluten-free asafoetida or skip asafoetida while preparing the tempering for the chutney.
More Peanut Recipes
More Chutney Recipes
- Red Bell Pepper Chutney
- Onion Tomato Chutney
- Coconut Chutney
- Walnut Chutney
- Onion Chutney
- Raw Mango chutney
- Tomato Chutney
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Peanut Chutney Recipe
Ingredients
- ½ cup peanuts
- 2 teaspoons coconut oil (or olive oil)
- ½ teaspoon cumin seeds
- 1 teaspoon split urad dal optional
- ¼ cup onion (or 4-5 pearl onions/shallots)
- 3 cloves garlic
- 3-4 dried red chilies (or green chillies)
- 1 small piece of tamarind
- ½ cup water for grinding or as needed
- salt adjust to taste
For Tempering:
- 1 teaspoon coconut oil
- ½ teaspoon mustard seeds
- ½ teaspoon split urad dal
- a pinch hing (asafetida)
- 1 stalk curry leaves
- 1 dried red chili
Instructions
- Dry roast peanuts in a pan on a medium flame until golden brown. Remove and let it cool down. You can also roast the peanuts in the air fryer.
- In the same pan, heat oil, add cumin (jeera) seeds, split urad dal and saute until the dal turns light brown.
- Add onion/shallots, garlic, dried red chilies and saute until the onions turn soft and light brown. It roughly takes 2-3 minutes. Turn off the heat and cool completely.
- In a blender jar, add roasted peanuts, sautéed onion-garlic mixture, tamarind, salt, water, and blend to a course or smooth paste as per your preference.
- Heat coconut oil in a small pan, add mustard seeds, urad dal, dry red chili, curry leaves, and hing, and saute for a few seconds until the dal turns light brown.
- Transfer to a bowl, add the prepared tempering.
- Serve groundnut chutney with Idli, dosa, paniyaram, roti, or as a spread in sandwiches and Enjoy.
Notes
Tips to Make the Best Peanut Chutney
- Peanuts: Always use good quality peanuts. Make sure that peanuts are fresh and have not gone rancid. Ensure peanuts are roasted well until golden brown on medium-low flame otherwise, they will taste raw in the chutney.
- Lentils: Lentils, like roasted split urad dal, adds a nutty aroma and texture to the chutney.
- Consistency: You can make the peanut chutney thick or thin by adjusting the water as per your preference.
- Roasting Garlic: Raw garlic is added in many traditional recipes, but roasting helps remove the pungent smell.
- Tang: Adding tamarind gives a tang to the chutney.
Variations
- No Tamarind: If you dont have tamarind, replace it with little lime juice, yogurt (curd), or amchur powder.
- Peanuts: You can make this chutney with or without peanut skin. Also, if you have store-bought roasted peanuts, use them directly in this recipe.
- No Onions: If you dont want to use onions, replace them with the same quantity of fresh shredded coconut.
- No Garlic: You can skip the garlic and use ½ inch of ginger instead or skip both or replace it with a pinch of hing (asafetida).
- Vegetables: Another variation of using peanuts in chutney with vegetables is Capsicum Peanut Chutney.
Nutrition
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