This easy peanut chutney recipe (hotel style groundnut chutney) is a creamy, flavorful South Indian side dish made with roasted peanuts, green chillies, garlic and mild tempering. Perfect for busy mornings, it pairs wonderfully with hot idli, crispy dosa and soft set dosa.

Peanut chutney also known as groundnut chutney/ Kadlekai chutney/ Verkadalai chutney/ Palli chutney was in my try list for long time. Though I am not a big fan of it, I wanted to try it for Sendhil. I know he loves peanut a lot. So I got this recipe from my friend Megha who is an expert in cooking Andhra and Karnataka dishes.
I learnt ragi mudde and so many typical Andhra, Karnataka recipes from her. I will share them one by one in future. And coming to this chutney, I have tried many times in my kitchen. Like Sendhil, I too started loving this chutney a lot. I am not sure whether this chutney is of Andhra style because I found different types of Andhra style peanut chutney recipes on net. Whatever be its origin, it tastes great!
Sometimes I use little milk along with water to make the chutney super white in color and it tastes more like the chutney that is served in road side hotels. It is a best side dish for idli, dosa. You can make “N” number of variations in this chutney. I have shared them in “Notes” section. So if you are a peanut lover, do try this easy groundnut chutney recipe. I am sure, you will make it more often like me.

Quick Notes for US & Abroad Kitchens
- Peanuts Selection: To save preparation time, use store-bought dry roasted unsalted skinless peanuts (readily found at Trader Joe’s, Costco, Patel Brothers or local supermarkets). Warm them in a dry pan for 1 to 2 minutes before blending to wake up their natural aromatic oils.
- Blender Choice: For the silkiest restaurant-style texture without graininess, use a compact high-speed blender cup (such as Nutribullet, Magic Bullet or the small jar of a Vitamix / Preethi).
- Milk for Hotel-Style White Color: Adding 2 to 3 tablespoons of cold milk while grinding gives the chutney its signature pale, creamy hotel-style look. For a dairy-free version, a splash of plain unsweetened almond milk or coconut milk works equally well.
- Consistency & Storage: Peanut chutney naturally thickens as it sits in the refrigerator. Store in an airtight glass container for up to 3 days (skip milk if storing longer). Stir in 2 tablespoons of warm water before serving to bring back its pourable consistency.

Easy peanut chutney recipe
Ingredients
Main Ingredients
- ½ cup Peanuts / Groundnut (approx. 75 g / 2.6 oz)
- 3 – 4 no Green chillies
- 4 cloves Garlic (small sized)
- ¼ tsp Cumin seeds (jeera)
- 1 tbsp Fresh grated coconut (approx. 1 big finger piece – optional)
- Salt as needed (approx. 1/2 tsp)
- ¼ cup Boiled, cooled milk (approx. 60 ml / 2 fl oz – optional, gives hotel style creamy white color)
- Water as needed
To temper
- 2 tsp Cooking oil (approx. 10 ml)
- ½ tsp Mustard seeds
- ½ tsp Urad dal
- 1 no Dry red chilli (broken)
- Curry leaves a few
Instructions
- Heat a kadai on medium heat. Lower the flame and dry roast the peanuts until they turn golden brown and begin to crackle. Switch off the flame and leave them in the warm kadai so they become crisp. Once cooled down, take a handful of roasted peanuts and rub them gently between your palms to shed the papery skins. Blow away the loosened skins and set the cleaned peanuts aside.
- Heat 1 tsp of oil in a small pan and saute the green chillies for a minute until light blisters appear.
- In a mixie jar or small blender, add the roasted skinless peanuts, sauted green chillies, garlic cloves, cumin seeds, coconut (if using) and salt. Pulse once or twice to crumble into a coarse powder. Then add a little water (or milk and water) and grind into a smooth, creamy paste. (Note: Avoid using milk if you plan to store the chutney in the refrigerator for 2 to 3 days).
- Transfer the ground chutney to a serving bowl and adjust the consistency by stirring in a little water as needed. Heat 2 tsp oil in a small tadka pan. Splutter mustard seeds, then add urad dal, broken red chilli and fresh curry leaves. Pour this aromatic tempering directly over the chutney, mix gently, and serve with hot idli or spongy dosa. Enjoy!
Notes
- You can use red chillies in place of green chillies.
- Add 1-2 small onions to the above recipe.
- Using coconut is optional.
- You can also add few stalks of coriander leaves while grinding.
- Roast 1 tbsp of chana dal in little oil and add while grinding.
- Adding milk is also optional, but it gives white color to the chutney.
Sharing is caring
Enjoy with idli and dosa. Tastes yummy!





Adding milk for chatney tis first time I am cing,but looks gr888
Adding milk is new.. Normally I used to roast the peanuts and add other ingredients directly.. will try sauting green chilies next time.. :) lovely click as usual dear :)
Peanut chutney looks tempting!!
Its teeny bit different than how I prepare it.. And we love it in any form.. Looks delicious !! :)
this looks really delicious….
I've never added cumin or milk to chutney, so it is a nice variation to the recipe I normally follow. This looks inviting!
looks great.. Nice combo with dosa..
adding milk !!! for chutney !!!! thats really a new thing.. will surely try
Delicious chutney.. Adding milk to chutney sounds new, will try next time..
Love this chutney with crispy dosas, its been a while i prepared them.
i tried it today it came ot well.all credits goes to u
Thank u Sowmiya :) I am so happy !
Hi Chitra.. I tried this chutney without milk n coconut for dosa.. It came out really yummy.. And it stayed for long..
That's a great tip for summer. I will try this way :)Thanks for the feedback Anusha :)
Nice receipe i tryd 2day it cme out very wel thanks
Thank you :)