Heat oil in a pan.
Once hot add the chopped onion and garlic.
Saute until translucent.
Now add the chopped tomatoes.
Prepare a paste of water with red chilly powder.
Add this to the pan along with salt to taste.
Let this cook on slow for 10-15 minutes until the tomatoes are nice and mushy.
Serve it with Rice, roti, Idli/Dosa, pattie or as a spread on biscuits and crackers.