Dahi Aloo is a tangy and spicy potato curry made by simmering baby potatoes in a tick yogurt sauce. Also called dahi wale aloo, it is served best with pooris (fried flatbread) or naan.

I grew up in a household where potatoes were cooked on a slightest cue for any meal of the day. We always had boiled potatoes ready to go in the fridge. My grandmother's kitchen was pure vegetarian and dishes made with the humble spud were a staple similar to most Indian homes.
I picked a bag of baby potatoes from the store the other day and I had a few ideas in my mind. Brutal summers are raging here in Las Vegas and yogurt based curries are my go to on most days. They are light and refreshing to eat.
For this sauce, I made a dried mint scented yogurt sauce.It has notes of fennel and cardamom. I didn't fry the potatoes before adding them to the sauce, however you can do so if you would like. The sauce is rather thickish. It pair beautifully with flatbread and a side of chutney or pickle.
Dahi Aloo
Ingredients
For Boiling Baby Potatoes
- 12-15 (~1 lb) baby potatoes
- Water for boiling
- ½ teaspoon salt
For Yogurt Sauce
- 1 small onion roughly chopped
- 3 garlic cloves
- 1 inch ginger
- 8 whole raw cashews
- 3 tablespoon ghee or cooking oil
- ½ cup plain yogurt
- ½ teaspoon coriander powder
- 1 teaspoon red chili powder (hot),adjust to taste
- ¼ teaspoon sugar
- 1 teaspoon dried mint
- 1.5 teaspoon garam masala
- 1 teaspoon salt adjust to taste
Whole Spices
- 3 green cardamom
- 1 inch cinnamon
- 2 clove
- ¼ teaspoon fennel seeds
- ½ teaspoon cumin seeds
- 2-3 dried red chillies
Instructions
Boil The Potatoes
- In a large pot, add 2-4 cups of water and bring it to a boil. Add the washed and scrubbed potatoes to boiling water.
- Cover and cook on high heat for about 8 minutes or till they are 80% cooked. Use a fork to check - it should insert easily without breaking the potato.
- Drain and let sit covered till potatoes cool down. If you wish you can leave the skin on, I peel them. Set aside.Note- If you wish you can pan fry or shallow fry the cooled potatoes in oil, I did not.
Make The Sauce
- While the potatoes are boiling, in another pot, add the onions, ginger, garlic and cashews. Add ½ cup water and let cook for about 5-8 mins on medium heat till the onions are soft. Place everything into a blender jar along with remaining liquid and make a fine paste. Keep aside.
- In a small bowl, whisk yogurt with sugar, dried mint and garam masala. Keep near. Note- All the above steps can be done a day in advance.
- Lets begin cooking the sauce.In a heavy bottom cooking pot (wok shaped or kadai is best), warm up the ghee on low medium heat.
- Temper with all the listed whole spices. Cook for 10-15 seconds.
- Add the onion & nut paste that we made. On medium low heat, stirring, cook the paste for 5-7 mins or till you start see oil separating but the color of paste should not change much. Due to cashews the paste will stick so keep stirring regularly.
- Next, add the coriander & red chili powder, saute for a minute. If needed add a little water while sautéing the spices.
- Add the potatoes next and stir around such that all the potatoes are covered in the onion masala. Reduce the heat to low and keep stirring for 2-3 minutes.
- Add the beaten yogurt to the pot next. Immediately start mixing and continue for 2-3 minutes so as to avoid yogurt from curdling.
- Slowly you will see that yogurt forms part of the masala. Check and adjust the salt. We will continue to stir for few more minute till yogurt is warmed through. Slowly you will see fat from the yogurt separating in tiny bubbles.
- Add ? cup to ¾ hot water next to the pot (depending on the sauce consistency you prefer). Mix around, let come to a slow boil and cover the pot. Let cook on low for 10 minutes on low heat till the potatoes are cooked through.
- Serve garnished with chopped coriander leaves.
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