Heat the oil in a large saucepan and cook the onion for 10 minutes until transparent.
Add chili and ginger and cook for a further minute.
Add the peppers, lentils and nutmeg and stir to mix. Add the coconut milk and the stock to the soup. Leave to simmer until the vegetables are fully cooked through and the lentils are soft. Remove from heat and blend until smooth. Season to taste.
Sprinkle over the toasted coconut, garnish with fresh herbs and serve.