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To a large bowl, add the cashews, 1 teaspoon salt, and enough cool water to cover by about 2 inches. Let soak for at least 8 hours or overnight. Drain and set aside.
In a large pot, heat the coconut oil over medium-high heat, until shimmering. Add the onion and a pinch of salt and cook, stirring occasionally, until softened and translucent, about 4 minutes. Add the curry leaves and mustard seeds and cook, stirring regularly, until the leaves become translucent and the mustard seeds begin to darken and audibly pop, 3–4 minutes. Stir in the reserved cashews, the curry powder, turmeric, and chile powder, then immediately add the coconut milk and ¼ teaspoon salt. Lower the heat and bring the mixture to a simmer, stirring to make sure everything is well combined. Cover the pan and cook, checking occasionally and adding a bit of water if the mixture is too thick, 20–30 minutes. Taste and adjust the seasoning if necessary, garnish with lime wedges, and serve.