Wash your potatoes with water & boil them in a pressure cooker for 4-5 whistles. Peel them & keep them aside.
Heat mustard oil in a pan. Add in the bay leaf, dried red chilli, jeera, and Hing & cook for 10-20 seconds. Add in sliced onions. Cook for 2-3 minutes on low flame.
Add in the chopped garlic & ginger & cook till the onions soften. Add in the chopped tomatoes & salt & cook till the tomatoes soften. Add in smashed green chillies, coriander powder, Haldi, garam masala, red chilli powder & sugar.
Add the boiled potatoes & water & mix well. Cover & cook till the gravy thickens.