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Heat a little oil in a pan and add onions, green chilies and salt; sauté until the onions turn lightly translucent (ensure not to brown them).
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Add potatoes and sauté to mix with the onions for 2 minutes.
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Follow by adding chili powder, turmeric powder, and mix well. Add water and lower the flame to a medium, place the lid and allow it to cook until the water boils.
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Once it starts boiling, remove the lid, add coriander powder, and continue cooking with the pan open until the potatoes are cooked and turn soft.
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When the water starts reducing, lower the flame and add coconut milk and fennel powder. Check for the seasoning and continue cooking.
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When the curry starts to slightly boil and bubble, turn off the flame. We do not want to cook it beyond this stage. The curry will thicken after a while.
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Prepare the tempering in a separate pan by heating oil and splutter mustard seeds. Add curry leaves and dry red chilies, pour this to the potato curry and mix well.
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Serve hot with poori, chapati, idiyappam, appam or naan