If my curry becomes too dry during the cooking process, i add a little water then just evaporate it off with more cooking.
I dont see an issue at all.
In fact adding a little water when you are frying the spice in the hot oil causes a great reaction and i think helps the spice release their flavours.
Of course dont over do it when adding water to the final dish, i swear this is sometime doen by the restaurant chefs as ive had some curries that almost leave a puddle of water on the plate....
S