Dry rost the cleaned dried shrimp for 7-8 mins on low flame. Keep it aside.
Heat oil in a pan and add crushed red chilli and sliced small onions. Fry it for 2 mins. Add grated coconut and stir for a few mins. Do not brown it. This is done mainly to remove the water content from the coconut. Remove from fire and let it cool.
Combine the heated coconut, roasted dried shrimp, ginger, salt and curry leaves. Grind everything together, till the dried shrimps are powdered well. Do not add water while grinding.
Serve with rice.
Notes
You can use whole dried red chilli instead of red chilli flakes. Use around 3-4. I have it with rice, dosa, idli, chapathi etc; Storage: You can store this in the fridge for 2 weeks in an airtight container.