1: Grind all the ingredients for the paste. Add water gradually, as needed, to form a smooth paste.
2: Heat oil in a pot and add the onion and green chilli. Saute until the onion turns translucent.
3: Add tomato, turmeric powder, and salt. Saute for 3-4 minutes until the tomato softens.
4: Add the prepared masala and saute for 3-4 minutes, then add water and mix.
5: Cover with a lid, reduce the flame to medium-low and cook for 10 minutes, stirring occasionally.
6: Add water and sugar, and bring it to a boil.
7: Add the prawns and cook for 3-4 minutes, depending on the size of the prawns.
8: Optionally, add some coconut milk right before turning off the heat. Stir, remove from the stove and serve with steamed rice.