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Step 1
Soak poppy seeds in 1/2 cup water for 30 minutes. Add green chili peppers to the blender jar and blend into a very smooth paste.
Step 2
Heat oil in a kadhai or wok over medium-high heat. Add the panch phoron. If using mustard oil, wait for the oil to begin smoking before adding the panch phoron.
Step 3
As soon as the mustard crackles add the potatoes to the wok and mix. Stir-fry the potatoes for a couple of minutes.
Step 4
Add the blended poppy seed paste and a cup of water to the potatoes and mix well. Add salt to taste and bring to a boil.
Step 5
Lower heat to medium-low, cover the wok, and cook until the potatoes are tender, about 10 minutes.
Step 6
Let the aloo posto continue cooking, uncovered, until the sauce has reduced quite a bit and is almost dry. Check salt and turn off heat. Serve hot or warm.