Drain the soaked dal completely and gently pat it dry using paper towels to remove excess moisture.
Combine the 0. 25 cups (0. 9 oz / 25g) chickpea flour, 0. 5 tsp. (0. 1 oz / 2g) turmeric, and 1 tsp. (0. 2 oz / 5g) salt in a 1-quart bowl. Slowly whisk in 0. 5 cups (4 oz / 120ml) of the water or whey until a smooth paste forms.
Add the 1. 25 cups (10. 6 oz / 300g) yogurt and whisk until perfectly creamy.
Pour in the remaining 3. 25 cups (26 oz / 770ml) of water or whey, blending thoroughly (a blender or food processor can also be used for this step).
Heat 1 tbsp. (0. 5 oz / 15g) ghee or butter in a heavy 3-quart saucepan over moderate heat.
Once hot but not smoking, add the dried dal and fry while stirring continuously until it achieves a reddish-brown color. Carefully pour the blended yogurt mixture into the pan and bring it to a simmer, stirring frequently.
Drop in the 6-8 curry leaves, turn the heat down to low, cover the pot, and let it simmer gently for 30 minutes, making sure to stir it every 5 minutes to prevent sticking.
While the sauce simmers, heat the 2 tbsp. (1. 0 oz / 30ml) ghee or oil in a large, nonstick frying pan over moderate heat.
Add the 1 tsp. (0. 2 oz / 5g) mustard seeds and 1 tsp. (0. 1 oz / 3g) cumin seeds.
Fry until the mustard seeds turn gray, sputter, and pop.
Toss in the 12 oz (340g) sliced bell peppers and sauté for about 8 minutes, tossing occasionally, until they are almost tender.
Sprinkle the 1 tbsp. (0. 2 oz / 5g) ground coriander, 0. 25 cups (0. 9 oz / 25g) coconut, and 0. 1 tsp. (0. 05 oz / 1g) black pepper over the vegetables, toss to coat evenly, and set the pan aside.
Exactly 5 minutes before you are ready to serve, transfer the sautéed peppers and the 2 tbsp. (0. 2 oz / 5g) fresh coriander or basil into the simmering karhi sauce. Allow it to heat through gently. For an extra rich finish, swirl in 1-2 tbsp. (0. 5 oz - 1. 0 oz / 15g - 30g) of Basil-Nutmeg butter.
Serve hot over a bed of freshly cooked rice and garnish with decorative bell pepper chains.