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Parboil Potatoes: Boil washed baby potatoes in salted water for 8–10 minutes until 70% tender (firm in the center). Drain, peel, prick thoroughly with a fork, and pat dry.
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Sear Potatoes: Heat 3 tbsp oil with ¼ tsp turmeric and ½ tsp Kashmiri chilli powder in a kadai. Shallow-fry potatoes over medium heat for 6–8 minutes until golden and blistered. Remove and set aside.
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Sauté Aromatics: In the same pan, heat 2 tbsp oil. Sizzle cumin seeds, bay leaf, cardamoms, cloves, and cinnamon stick for 20 seconds. Add chopped onions and sauté over medium heat for 7–9 minutes until rich golden brown. Stir in ginger-garlic paste and green chillies; sauté for 1 minute.
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Cook Tomatoes: Add pureed tomatoes and ½ tsp salt. Cook for 6–8 minutes until thick and oil droplets separate at the edges.
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Add Spiced Yogurt: Whisk curd with coriander powder, cumin powder, 1 tbsp Kashmiri chilli powder, ¼ tsp turmeric, garam masala, and fennel powder. Lower heat to minimum; pour the curd mixture in while stirring continuously for 2–3 minutes until integrated and bubbling.
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Dum Simmer: Add 1 to 1.25 cups warm water and remaining salt. Add fried potatoes. Cover tightly with a heavy lid (seal with foil if possible). Simmer on the lowest flame for 12–15 minutes until potatoes are fork-tender and oil rises to the top.
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Finish: Stir in crushed kasuri methi and chopped coriander. Rest covered for 5 minutes before serving.