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For the coconut sauce, combine all the sauce ingredients in a blender and blend well. If you are using fresh coconut, don’t blend for too long, as it will cause too much of the oil to release. If using dried coconut, blend for 30 seconds, then let sit for 5 minutes so the coconut can rehydrate, then blend again to keep the texture from getting too coarse.
For the vegetables and tempering, preheat the Instant Pot by selecting the Sauté setting. Heat the oil in the preheated pot for a few seconds, then add the mustard seeds to the oil pooled on the edges and leave for about 30 seconds, or until they start to splutter. Stir in the green chile and curry leaves, then add the vegetables and coconut sauce. Add the water and give it a good stir to pick up any stuck bits. Select the Cancel setting.
Lock the lid into place, set the Pressure Release Knob to Sealing, select the Pressure Cook/Manual setting at high pressure, and set the cooking time to 4 minutes.
Once the cooking cycle is done, let the pressure release naturally for 2 minutes, then carefully set the Pressure Release Knob from Sealing to Venting to release any remaining pressure. Carefully open the lid. Taste for salt, adjust if needed. Garnish with lime juice. Serve with rice or dosas.