Separate seeds from the soaked tamarind. The extracted tamarind sauce should look like a thick purée.
Heat oil in a frying pan. Fry raw peanuts until it becomes brown. Remove peanuts and set aside.
Add mustards in the same pan and once it splutters add asafoetida.
Add the red chillis, curry leaves, turmeric powder, urad dal, channa dal.
Once the dals become golden, add thick tamarind sauce and add salt.
Allow the mixture to boil for sometime until it thickens into a very thick paste. It would take 20-30 minutes.
Add the fried peanuts and ingredients that were ground on top of this paste.
This tamarind paste is called "pulikachal" and can be stored in the refrigerator for almost 10 days.