Marinate the mutton in 1/2 cup of yogurt, ginger garlic paste, salt and turmeric. Leave aside for an hour.
To make the wet paste, heat 2 tbsp of oil in a pan. Add in the sliced onions, ginger, garlic, and green chillies and saute them for 2-3 minutes until the onions are translucent.
Add the grated coconut and lightly roast for a few minutes until it turns slightly brown. Grind this mixture into a smooth paste adding a bit of water.
Prepare the dry Xacuti masala powder. Dry roast the ingredients listed above in a teaspoon of oil. Grind it into a fine powder.
To finally prepare the dish, heat 2 tbsp of oil in a pan. Add in the chopped onions and cook until translucent. Add the marinated mutton. Cook until dry on high flame.
Add in the wet xacuti paste and dry masala. Mix well. Add water and cook till mutton is tender.
Finally, add in the lime juice and serve hot.