1. Combine the lemon juice, water and ½ cup of the coriander in the jar of an electric blender, and blend at high speed for 30 seconds, or until the mixture is reduced to a puree. Turn the machine off and scrape down the sides of the jar with a rubber spatula.
2. Then add another ½ cup of coriander, blend for 30 seconds, and stop the machine again. Repeat until all of the coriander has been pureed. Add the coconut, onions, ginger, chili, sugar, salt and pepper, and blend again. When the mixture is perfectly smooth, taste and add more sugar or salt if desired.
3. Serve immediately. If the chutney is not to be used at once, cover it tightly with aluminum foil or plastic wrap, and refrigerate it. (The chutney may be kept in the refrigerator for about 1 week.)