Make the masala podi (spice mixture) by heating 1 tablespoon oil in a frypan over medium heat; fry the chana dal, urad dal, dried chillies, coriander seeds, and cumin seeds in the hot oil until fragrant and beginning to brown, about 5 minutes. Grind the mixture with the coconut into a fine powder using a mortar and pestle.
Heat 2 tablespoons oil in a large frypan. Fry the peanuts and mustard seeds in the hot oil until the peanuts begin to brown, 2 to 3 minutes. Add the onions, green chillies, curry leaves, and asafoetida powder to the peanut mixture; cook and stir until the onions are browned, 5 to 7 minutes. Stir the tomatoes, turmeric, sugar and salt into the mixture; continue cooking until the tomatoes are soft, about 10 minutes more. Season with the masala podi. Crumble the rice into the frypan using the back of a spoon to separate the individual grains. Cook and stir until the rice is mixed into the dish and hot, 5 to 7 minutes. Garnish with the coriander to serve.