Heat oil in a pan. Add the poppy seeds and fennel seeds; as they begin to splutter, add the shallots. Saute in low to medium flame until the onion is caramelized or until it begins to brown.
Remove from heat and let it cool. Transfer it to a food processor; add chilli powder and coriander powder. Grind it all to a fine paste.
Coconut milk:
Add the shredded coconut and water to a food processor. Grind it till the coconut is reduced to a coarse paste.
Pour it in a strainer lined with a cheesecloth. Gather the edges of the cheesecloth and squeeze out the milk. Set it aside.
The gravy:
Heat oil in a pressure cooker. Add the cinnamom and cloves to the hot oil. When the cloves swell up, add the chopped onions; saute until it turns translucent. Spoon the ginger-garlic paste.
When the paste begins to stick to the bottom, add the tomatoes and salt. Once the tomatoes are soft and juicy, add the washed mutton and add in some turmeric. Saute it for a bit.
Add the masala paste; saute till it coats the mutton. Pour in water and sprinkle some coriander leaves. Close the lid of the pressure cooker and wait for 3-4 pressure releases. Remove from flame and let it cool down.
Once the pressure is off, open the lid and pour the coconut milk.Check seasonings; add salt if required and add pepper for spiciness (if required). Place it on flame and bring it a boil.
Sprinkle some more coriander leaves and serve it hot!
Notes
If you are in a hurry or you don't have coconut, you can always use store-bought coconut milk or coconut milk powder.
If you do have fresh or frozen shredded coconut, you can add it to the onions while making the paste. This way, you don't have to add coconut milk and you only have to add 120g coconut.
After you're done serving it, store in the refrigerator for later use. This gravy can also be frozen for up to a week.