Make round slices of the banana stem, remove the fibers and cut it into long stripes. Put it in the water. (Little buttermilk can be added to the water to avoid discolouration).
In a kadai put the oil and add mustard seeds and when it pops up add the chillies broken into small bits and urad dhal and fry till it turns light brown. Add curry leaves and fry for a while. Add the Banana stem pieces along with salt. Sprinkle a handful of water and cover with a lid. Cook for few minutes. Open the lid and stir well. Cook till the banana stems are soft and all the water is absorbed. Add grated coconut and mix well.