Place the chicken pieces in a large bowl and rub the salt, turmeric and yoghurt into it. Let it marinate. Soak the grated coconut in coconut liquid and set aside. Heat little oil in a pan and roast the ginger, garlic, pepper corns, coriander, cumin, cloves & cinnamon. Grind these roasted spices with 1/4 cup of soaked coconut to make a smooth paste.
Heat the oil in a large pan and fry the onions until browned. Then add the tomatoes, ground mixture and red chilies and fry for 5 minutes. Add the chicken pieces and fry for another 5 minutes. Then add the remaining soaked coconut. Cover the pan and allow it to boil. Open the lid and pour 1 1/2 cups of water. Cover and reduce the heat and cook for 20-25 minutes or until the chicken pieces are cooked. Serve hot.