Prepare all the veggies, wash them and chop accordingly. Wash, peel and cube the potatoes and parboil them. This step is absolutely optional, i have tried both ways of parboiling prior and cooking directly in the liquid. The former might reduce the time a bit, but taste-wiseit is the same. Go ahead and use the method that suits you best
In a pan, add oil, when it is hot add roughly chopped onions, garlic and green chili. Sauté until onions are translucent. Next add chopped tomatoes and sauté.
Let the tomatoes lose their shape, it might take around 2-3 minutes, add the cashew-nuts to this, add 1/4 cup of water ,cover and cook for 2-3 minutes. Take it off the stove and let it cool for 10 minutes.
I usually use my stick blender for blending masala paste for my curries. So i don't mind when it is hot. If you are using your normal blender, kindly let the ingredients cool well or else you might end splattering hot liquid all over you.
Add 1/4 cup of water to the onion-tomato mix and blend it to soupy consistency. Once done, keep aside.
Now in the same pan, add another tsp of oil, add cumin and chopped capsicums to it and sauté for 2-3 minutes. Next add the parboiled/raw potatoes to this and sauté for a minute. Add turmeric to this and mix well.
Now add the blended onion & tomato cashew liquid to this. Add red chili powder, coriander powder and salt. Mix well.
If potatoes are parboiled :let the curry cook without covering for 8-10 minutes. Once done, finally add the garam masala and let it sit for 2 more minutes in heat.
If the potatoes are not parboiled : Cover and cook for 8 minutes and let the potatoes cook well, then uncover and cook for another 5-8 minutes.
I served them with beets paratha for my kids lunch.