In a large pan, heat ghee or oil over medium heat. I like to use 2 tablespoons of oil and 1 tablespoon of ghee.
Add the whole spices – bay leaf, cloves, cardamom pods, cinnamon stick, and cumin seeds. Sauté for about a minute until they release their aroma.
Add the diced green chili pepper, ginger, and garlic. Sauté for another 30 seconds.
Then add the finely chopped onions and cook for 6-7 minutes until they turn brown.
Stir in the finely chopped tomatoes, cover the pan with a lid, and cook for 3-4 minutes until the tomatoes soften. Remove the lid and stir the onion-tomato masala.
Add all the spices (turmeric powder, coriander powder, cumin powder, black pepper, Kashmiri chili powder, and salt). Cook for an additional 2 minutes until there is oil leaving the sides of the pan.
Add the mutton or lamb pieces and cook for 6-8 minutes on medium heat until the meat changes color on the outside. (It is important to cook the meat before adding water for it to develop the flavors, so don’t skip this step)
Pour 1.5-2 cups of water into the pan, bring it to a boil, then cover and cook for about 60-80 minutes until the lamb is almost cooked. Stir occasionally every 10-15 minutes. The meat should become tender by this stage. If needed, continue cooking for another 10 minutes.
Add the potato cubes to the pan. I have cut the potatoes into large cubes so they hold their shape after being cooked.
Pour 1/2 cup of water, stir well, cover with a lid, and cook for another 20 minutes until the potatoes are soft. Stir halfway through the cooking process.
Garnish with fresh cilantro leaves. Serve the Aloo Gosht curry with naan or any bread of your choice.