To soak chickpeas, place them in a bowl, cover with water and set aside for 8 hours or overnight. Drain water. Place chickpeas in a pressure cooker, and cover with 2 ½ cups water. Cook for 2 whistles. Alternatively, you can cook them on the stovetop for 20-25 minutes or until chickpeas are tender. Set aside.
To make coconut paste, heat oil in a frying pan over medium-high heat. Add coconut, shallots, red chilies, coriander seeds, garlic cloves and curry leaves. Sauté, stirring, for 2-3 minutes or until browned. Remove from heat. Leave to cool. Place the mixture in a food processor. Process to a smooth paste. Add a little water if needed. Set aside.
To make the curry, heat oil in a pan over medium-high heat. Add mustard seeds and allow to splutter. Add onions and coconut slices. Sauté, stirring occasionally, for 2-3 minutes or until browned. Add turmeric powder, coriander powder, garam masala and red chili powder. Sauté, stirring constantly, for a minute.
Add coconut paste. Sauté, stirring constantly, for 1 minute. Add water to make thick sauce. Add boiled chickpeas. Season with salt. Stir to combine. Bring to boil. Reduce heat and simmer for 2-3 minutes.