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+ servings
Mushroom Curry Recipe

Mushroom curry with coconut milk | Vegan Mushroom Gravy

Mushroom curry with coconut milk - delicious, vegan/vegetarian curry enriched with coconut milk giving it a creamy consistency! Perfect for flatbreads and dosas, this curry will be your family favorite!
Course Curries, Main Course
Cuisine South Indian
Keyword curry, gravy, Mushroom
Prep Time 20 minutes
Cook Time 30 minutes
Total Time 50 minutes
Servings 4 people
Author Niveditha


For the spice mix:

  • 9 Bedgi Chillies , (4 if using regular dried chillies or 12 if using kashmiri)
  • 2 tbsp Whole Coriander Seeds
  • 1 tsp Raw Rice , (any medium grain rice)
  • 1 tsp Whole Black Pepper
  • 1 tsp Cumin Seeds
  • 1.5 tsp Fennel Seeds
  • 1 tbsp Split Roasted Gram
  • 1 inch Cinnamon Stick , (if not available, use garam masala)
  • 2 Cloves , (if not available, use garam masala)
  • 2 Cardamom Pods , (if not available, use garam masala)
  • 1.5 tbsp Poppy Seeds
  • 1.5 tbsp Chopped Coconut Pieces , or copra

For the curry:

  • 400 g Button Mushrooms , halved or quartered
  • 3 tbsp Peanut Oil , or any flavorful oil
  • 2 sprigs Curry Leaves
  • 2 Bay Leaves , fresh or dried
  • 2 medium Onions , finely chopped, (approx 200 g)
  • 1 tsp Ginger Garlic Paste , heaped
  • 2 medium Roma Tomatoes , finely chopped, (approx. 120g)
  • 1 tbsp Sea Salt
  • 350 ml Water
  • 200 ml Thick Coconut Milk , (see notes)
  • Cilantro Leaves , for garnish, (optional)


Making the spice powder:

  • Heat up a sauté pan and dry roast all the whole ingredients except poppy seeds and coconut pieces. Once the spices have warmed up, transfer them to a plate to cool down.
  • Add the poppy seeds to the pan and quickly swirl it around the pan for only a few seconds. Transfer to the plate with other spices.
  • Next, add the coocnut pieces and sauté in low flame until it begins to brown and looks translucent around the edges. Trannsfer it to the same plate and let all the spices completely cool down.
  • Once cool, add them to a blender and blend it until it is reduced to a powder. (as pictured above in the post). Use a spatula to scrape the sides. Transfer to a bowl and set it aside.

Making the curry:

  • In a heavy bade saucepan or a dutch oven, add the oil and let it get it hot. Once the oil is hot, add the curry leaves and the bay leaves. Let it sizzle.
  • Then, add the chopped onions and let it sauté until the onions turn translucent.
  • Next, add the ginger garlic paste to the onions and give it a swirl. Immediately after, add the chopped tomatoes and salt. Sauté until the tomatoes soften and become mushy.
  • Add the ground spice powder and mix it with the onions and tomatoes. Drop all of the mushrooms and mix it to coat. Pour in the water and let it cook until it thickens up a bit.
  • Finally add the coconut milk and bring it to a boil. Garnish with coriander leaves and serve hot!

For making this curry in Instant Pot:

  • Follow the same steps as given above except for the last two steps and the quantity of water.
  • After you put in the mushrooms, pour 200 ml water and 200 ml thick coconut milk. Set the Instant Pot in PRESSURE COOK mode for 8 minutes. Quick Release and serve hot!


  • Hotness: This is a medium spicy curry where the hotness doesn't overpower other flavors. If you like really hot curries, increase the number of chilies. On the other hand, if you like a milder version of this curry, use a fewer number of chilies.
  • Spices: I suggest you don't skip on the spices for this curry. The freshly ground spices are what give this curry a beautiful taste. However, you can substitute the whole cinnamon, cloves, and cardamom with 1/4 tsp of garam masala.
  • Mushrooms: I like to use Buttom Mushrooms, but you can use any type of mushrooms for this curry.
  • Other variations: This curry base would suit other main ingredients like boiled eggs and chicken. My favorite is a combination of eggs and mushrooms.
  • Coconut Milk: You can use homemade or store-bought coconut milk. You can also use coconut milk powder and thin it down with water.
  • Making fresh coconut milk: My personal preference is to use fresh coconut milk. To make 200 ml of coconut milk, I use one medium coconut and about 140 ml of water.
  • Storing: This curry is best had the same day. However, if you end up with leftovers, freeze it immediately.