Shrimp Thoren (Shrimp with Coconuts)

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1 cup shredded unsweetened coconut

1 green chili, split lengthwise

2 cloves garlic, crushed

1 teaspoon salt

1 teaspoon coriander

1/4 teaspoon cayenne pepper

1/4 teaspoon turmeric

1/2 cup water or less

3 tablespoons vegetable oil

1/4 teaspoon mustard seeds

2 dried red chilies

10 curry leaves

2 pounds shrimp, shelled, deveined, cut into 1/4-inch pieces