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Wash the potatoes. Peel off skin and cut big potatoes in half. Prick each potato with fork 2-3 times.
Heat a dry pan. Add all the spices except chili powder and toast for 30 second or until fragrant. Remove in mortar pestle or spice grinder and grind to a powder.
Heat 3 tbsp oil in a heavy bottom (prefer non-stick) sauce pan. Add potatoes and cook until crispy almost brown from all sides.
Remove potatoes on a plate lined with paper towel.
Discard half of the oil from pan. In remaining half, add onion, garlic and ginger and saute until onions are soft. Add chili powder and mix in well.
While onions cook, grind cashews to a paste with soaking milk. In onion mixture add ground toasted spices and cook for 1 minute. Then add cashew paste and tomato puree and cook for 2-3 minutes until oil separates.
Now, reduce heat to lowest, then add yogurt, few tbsp at a time and mix after each addition until all yogurt is in. Increase the heat and continue cook for another 5 minutes or until oil shows on top. Now add fried potatoes with ½ cup water, mix well and cook covered for 5 minutes.
Remove from heat, garnish with cilantro and serve with rice or naan.