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Bring water to a boil in a large pot or saucepan. Add lentils and bring back to a boil. Once boiling, reduce heat to a simmer and cook lentils uncovered for 4-5 minutes or until just tender. Then drain and set aside. Be careful not to overcook or they can become mushy (cooking time will vary by variety of lentil – check package for instructions).
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In the meantime, heat a large rimmed skillet over medium heat. Once hot, add oil or water, shallot (optional), garlic, and ginger. Sauté for 2-3 minutes, stirring frequently. Then add salt, curry powder, turmeric, and cayenne and cook for 1 minute more. Lower heat to low.
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Add coconut milk and coconut sugar (or maple syrup) and stir to combine. Cook over low heat for 3-4 minutes to combine the flavors (see photo).
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Add the (well) drained, cooked lentils (see photo) to the coconut sauce and stir. They will likely need more seasoning at this point. I added a bit more salt, curry powder, turmeric, cayenne, and coconut sugar because I like big flavor. But season to taste.
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Turn off heat, add lemon juice, and stir.