Heat oil in a small pot over medium‑high heat. Add mustard seeds. When they start popping, add the sun‑dried red chili and curry leaves.
Add the sliced onions, diced tomato, and green chili. Cook until the onions soften and the tomatoes break down. Mix in turmeric, Kashmiri chili powder, and salt. Let the spices toast for a few seconds.
Pour in 2 cups of water. Once it boils, reduce the heat slightly. Crack an egg into the corner of the pot, keeping the yolk intact. Let it poach gently until the whites set.
Add the coconut powder and stir carefully until fully dissolved. Taste and adjust salt.