Heat the oil in a small saucepan over medium heat. Add the mustard seeds and let them pop. Stir in the dried red chili and curry leaves and cook for 30 seconds until fragrant.
Add the sliced onion, diced tomato, and green chili. Cook for 3 to 4 minutes until the onion softens and the tomatoes begin to break down.
Add the turmeric powder, Kashmiri chili powder, and salt. Stir for about 30 seconds so the spices become fragrant.
Pour in the water and bring the mixture to a gentle boil. Reduce the heat slightly.
Carefully crack one egg into one side of the pot and the second egg into the other side.
Simmer gently without stirring until the egg whites are fully set and the yolks reach your preferred doneness.
Mix the coconut milk powder with a little warm water to form a smooth paste.
Stir the coconut mixture into the curry carefully without breaking the eggs. Simmer for another minute.
Taste and adjust the salt if needed.
