Make a fine powder by blending together the ingredients of the masala in a blender. Keep it aside.
Remove the peel from potatoes and prick them.
Take oil in a frying pan and heat it for about one minute. Fry the potatoes on a medium heat until their color changes from white to light brown. Keep it aside.
Add grated onion, asafoetida, bay leaves and ginger-garlic paste to the remaining oil.
Fry the mixture till the paste turns reddish brown.
Add the masala prepared and heat for about 2 to 3 minutes.
Add turmeric, chilli powder and salt. Fry again for about a minute.
Now pour the milk to make gravy followed by adding fine curd.
Keep stirring continuously, add water if the gravy appears too thick.
Now add pricked potatoes to this gravy and cook in a pressure cooker. Remove from the flame after 4 to 5 minutes just before the first whistle.
Garnish it with fresh coriander leaves. Dum Aloo is ready to serve.