Boil and peel the baby potatoes. don't over boil the potatoes. 1- 2 whistle would be enough to get perfect potatoes.
Poke holes all around the potatoes using toothpick or skewers.
Take 2 - 3 tsp red chilli powder and mix with 1/4 cup of water and mix well to prepare a red chilli paste.
Heat oil in a pan for deep frying. Deep fry the potatoes and flip till you get golden brown skin all around. Once done remove from oil and keep on a tissue paper/ paper napkin.
Remove extra oil from pan. Leave 3 - 4 tbsp oil for further process of preparing gravy.
Add 1 tsp cumin seeds (Jeera) or caraway seeds (Shahjeera). Add hing. Then add the red chilli paste and stir continuously for 30 seconds.
Then add tomato puree, fennel powder, coriander powder and mix well. cook for 2 minutes.
Add beaten curd to the pan and mix well. Stir continuously till it starts boiling.
Then add fried baby potatoes. Add salt and let it simmer for 3 - 4 minutes more till all flavors incorporated into potatoes. If required add 1 cup water. But these comes with thick gravy. so don't add much water. keep stirring in between.
Let it simmer. After 5 minutes check the consistency. Turn off. add chopped coriander leaves and garam masala (optional). Serve hot with any kind of bread or rice.