Measure out the avalakki (poha) into a large bowl and rinse with cold water until the water runs almost clear. Drain the water and set the avalakki aside for 5 minutes to rehydrate. It is ok if there is a tablespoon of water at the bottom. But don’t leave too much water in the avalakki, or it will get very mushy when cooked.
After 5 minutes, mix half the salt into the avalakki.
Meanwhile, heat a wide, heavy bottomed saucepan and add the oil.
Once the oil is heated, add the mustard seeds and cover until the seeds pop. After the mustard finishes popping , lower the fire and add urad dal, curry leaves and chilis. Give a quick stir and wait a minute until the dal turns golden.
Add the chopped onions, and the rest of the salt. Cook while stirring frequently until the onions turn translucent.
Next, add the rehydrated avalakki. Fold everything together gently for a few seconds until the onions are evenly distributed.
Cook the avalakki over low to medium fire until the avalakki is heated through. This should not take more than a couple minutes. Avoid stirring too much at this stage. Adjust the salt if needed and turn off the fire.
If the avalakki mixture looks too dry, you can sprinkle a tablespoon of water and mix once before turning off the fire.
Cover the saucepan and rest the avalakki for 5 minutes. This will allow the avalakki to finish cooking in the residual heat and fluff up a bit.
Uncover the saucepan, and fluff up the avalakki with a fork. Garnish with fresh grated coconut, and chopped cilantro. Serve immediately.