Soak the chana dal, coriander seeds, 1/4 tsp of mustard seeds, cumin seeds and green chilis for at least 1 hour. The water needs to just cover the ingredients, do not use too much water.
While the dal is soaking, cut the Okra into 1" long pieces. Saute the okra in 2 tbsp of oil until it they are cooked through and start to turn brown around the edges. Set aside.
Whisk the yogurt and assemble the rest of the ingredients.
After the dal has soaked for an hour, make a fine paste with the soaked dal and spices, and fresh coconut using a blender. This is the masala.
In a saucepan, mix the masala with enough water to make a medium gravy consistency. Add salt, turmeric powder and curry leaves. Bring this mixture to a rolling boil on a medium or medium/low fire, stirring occasionally. The gravy will thicken as it cooks. Add a little more water if the gravy becomes very thick. Now, add the okra and cook for another 2 minutes.
Add the whisked yogurt (or buttermilk). After a couple of quick stirs, turn off the stove. This is important, since the yogurt will separate if it is cooked any longer.
In a pan, heat the remaining 1 tbsp of oil. Add the remaining 3/4 tsp of mustard seeds. After the mustard pops, add fenugreek seeds and red chillies. Pour this seasoning over the majjige huli. Serve hot as a main course along with steamed rice.