To begin, grate the carrots and keep aside.
Heat oil in a pan. Add mustard seeds, cumin seeds (jeera), hing (asafoetida), chana dal (split chickpea), and urad dal (split black gram). Saute until the dals begin to colorize.
Add in chopped onions, green chillies, and curry leaves. Saute until the onions are translucent. Do not brown.
Next, add the grated carrots, salt, and sugar. Mix well. Cook until the carrots soften.
Now add in the grated coconut and mix well. Cook for a minute.
Turn off the heat. Add chopped green coriander leaves and lemon juice. Mix.
The Carrot Palya is ready to serve. Garnish with chopped coriander leaves and serve hot.