Chop onion into fine pieces. Slit green chili. Wash and clean curry leaves. Peel the skin of butternut squash using the peeler.
Rinse and drain chana dal with half cup of water. Pressure cook it with until they cooked.
Chop the squash into small sized cubes.
Heat oil in a pan over medium heat. Add mustard seeds followed by urad dal. Allow mustard seeds to splutter in the oil. Then add chopped onion, curry leaves, and stilted green chilies. Saute until onion becomes pink and translucent.
Add squash, 1/2 cup water, and salt. Cook till fork tender.
Finally, add cooked and drained chana dal. Cook further for four minutes.