Boil the baby potatoes in salt. Peel and prick them with a fork.
In another bowl, mix the the curd and the cornflour. Keep aside.
Heat oil in a pan. Add in the potatoes and shallow fry them until they change color. Remove and keep aside.
In the same oil, add in the bay leaf and the coarsely ground garam masala.
Add in the chopped onions and green chillies and saute for a minute.
Add in red chillies powder, cumin powder, coriander powder, and salt to taste. Mix well.
Add in the potatoes and mix.
Add the tomato puree and tomato sauce. Mix until the potatoes are well coated with the masala.
Next, add in the curd mixture and mix well.
Crush the dried fenugreek leaves (kasoori methi) and add them to the potatoes.
Cover with a lid and let it simmer until the curd is cooked and you can see oil on the surface. Serve hot.