Boil the potatoes in water to cover until just fork-tender; drain. Lightly prick the potatoes with a fork. Set aside.
In a large skillet, heat the oil on high. Add the Ginger-Garlic Paste and sauté for about 10 seconds. Add the dried red chili and tumeric; mix well. Add the tomatoes and sauté for another 2 to 3 minutes.
Add the yogurt and cook for about 5 minutes. Add the potatoes. Sauté for 1 minute. Add the water and lower the heat. Cover, and cook for about 20 minutes. Add salt to taste. Serve hot.
* Recipe for Ginger-Garlic Paste provided in the cookbook. You may also use a jarred variety that is widely available at Asian grocery stores.