Boil the baby potatoes till soft. Do not overcook. Peel them and set aside.
Heat oil and ghee in a wide pan. Add the shahjeera, cinnamon, cloves, bay leaf, hing and cardamom and fry till a nice aroma comes.
Mix the chilli powder and dry ginger powder in little water to make a paste. Add to the pan and fry briefly, ensuring not to burn.
Add in the peeled potatoes and mix till the masala coats the potatoes. Keep on low flame for a couple of minutes to get a slight charred look.
Add in the yogurt and mix well. Now add the water and salt to taste and cook in low flame till the potatoes are fully cooked and the mixture thickens.
Finally sprinkle in the sugar (it will balance the spiciness). Serve warm with tandoor rotis or rice!