Rinse the moong dal and add it to the inner pot liner of the Instant Pot, along with the water and turmeric powder.
Close the lid of the Instant Pot and turn the sealing knob to seal. Press MANUAL and adjust time to 6 mins.
While the dal is cooking, grind together the grated coconut*, cumin seeds, dried red chillies, garlic and pearl onion with a little water, to a smooth paste.
Let the dal cook completely in the Instant Pot and wait for NPR (natural pressure release). The pin near the sealing knob will go down, once pressure is all released. Move the sealing knob to release and open the Instant Pot.
Press CANCEL / KEEP WARM. Press SAUTE button, mix the dal well and add more water if needed.
Add the coconut paste to this and salt and mix well. Let it cook in SAUTE mode for 4-5 mins.
In a small pan, heat the coconut oil, add the mustard seeds. Let them splutter, once done, add the pearl onion slices and fry till crispy along the edges. Add the curry leaves. And now pour this over the dal in the Instant Pot and mix well.If you don't want to use the stove top at all and want to do everything in the Instant Pot, do this step in the Instant Pot before adding the dal and water, right at the beginning.
* I use freshly frozen grated coconut. If you use that as well, defrost it and take the necessary amount and microwave for 30 secs, before you grind it. Otherwise, the oil from the coconut will be all chunky when you grind it and it wont grind well.