Heat a pan or kadai and add ½ tsp of oil. When the oil is hot, add the urad dal, dried red chili, asafoetida, and roast until the urad dal turns a deep golden color over medium-low heat. Transfer it to the mixer jar and set it aside.
Add the remaining ½ tsp oil to the same pan and add the shallots and green chilies.
Saute until the shallots are soft and blistered like below.
Reduce the heat to low; add the roughly chopped cilantro and mix well. Once it starts to wilt, turn off the heat and let it wilt further in the residual heat. Transfer this to the mixer jar.
Add the tamarind paste and salt.
Without adding water, grind the ingredients smooth, and that's it; the cilantro shallots chutney is ready.
You don't need any water to grind this chutney. And if required, do not add more than 2 tbsps of water. This is not a runny or watery chutney, and grinding it without water increases the shelf life.
Be cautious while adding salt. Start with a minimal amount, and if needed, add more.
I highly recommend shallots, but opt for red onions if you don't have them. Also, do not discard the cilantro stems. You can add one small garlic clove too.
I skipped tempering and added a tsp of Indian sesame oil/gingelly oil on top. It's optional, though. And you can add ½ tsp of mustard seeds in one tsp of gingelly oil and add that to the chutney.