Heat a pan over medium-high heat. Add all the ingredients from the coriander seeds to the cumin and toast for 2-3 minutes or until they start to change color. Add the chilies and coconut and continue toasting for a minute or until the coconut starts to change color. Remove from heat and stir in nutmeg, paprika, and cinnamon. Cool slightly and grind to a coarse powder in a spice grinder or small blender.
In a blender, combine the sauce ingredients with the mixture of ground spices from above. Add about a tablespoon of water and stir until smooth.
In the same pan, heat 1 tsp oil over medium-high heat. Add the mixed sauce mixture and cook for 6-8 minutes or until the garlic stops smelling raw and the sauce thickens and changes color. Stir occasionally. You can store this sauce at this point for future use (in the fridge for up to 3 days).
In the meantime, the vegetables except for the peppers, mix in a saucepan with 2 cups of water. Add 1/2 teaspoon salt and cayenne pepper to taste. Partially cover and cook over medium-high heat until vegetables are al dente. (15 to 20 minutes). Stir in the peppers and peas for the last 5 minutes. Add cooked vegetables or beans if using at this stage.
Mix cooked sauce mixture from step 3 and cooked vegetables and mix well. Simmer for 5 to 10 minutes or until desired consistency is achieved. Puree some vegetables. Taste and adjust the latte and heat and stir. Garnish with coriander and lemon and serve with crackers, toasted buns, garlic bread or flatbread.