Heat 2 teaspoons of vegetable oil in a pan over medium heat.
Add garlic, dried red chilies, curry leaves, and sliced onions to the pan. Sauté the mixture until the onions become soft, which typically takes about 1 to 2 minutes.
Next, add red bell pepper and saute until very well browned (charred) and reaches a soft texture. Once done, remove it from the heat and let it cool.
Next, roast ¼ cup of peanuts until they turn golden brown. Once roasted, allow them to cool. You can also roast the peanuts in the air fryer. Alternatively, you can use store-bought, unsalted, roasted peanuts.
In a blender, add the roasted bell pepper-onion mixture, roasted peanuts, tamarind, jaggery (optional), and salt. Blend them together until they form a coarse or smooth paste, adding a little water as needed to achieve the desired consistency.
Transfer the chutney to a serving bowl. Then, add the tempering if desired and mix well. Red Bell Pepper Chutney is ready, serve it along with your favorite breakfast dish.