Start the Instant Pot to saute mode and once hot add bay leaf, asafoetida, and the onions and saute till onions are translucent.
Now add the ginger-garlic paste and mix well. Cook till the raw garlic smell disappears.
Stir in the spice powder, mix well, and cook on low until the onions are slightly brown.
Add the tomatoes, salt, cover, and cook until the tomatoes are soft and juicy. Now switch off the Instant pot.
Allow the mixture to cool, remove the bay leaf and then blend either in a blender or with a hand blender into a smooth paste.
Transfer the ground masala back to the pot with 1 tbsp of butter, turmeric powder, and Kashmiri red chili powder.
Add the fried or peeled potatoes along with ½ to 1 cup of water. Mix well.
Close the lid with the vent to the sealing position. Cook n manual (pressure cook) high for 5 mins followed by natural release or wait for 5 mins and then release steam manually. Open the lid.
In a bowl, whisk the yogurt until smooth. Add the onion-tomato curry about 2-3 tablespoon to the yogurt and mix to combine.
Add the whisked yogurt slowly, mixing continuously until all is added and well combined. Mixing continuously will prevent the yogurt from separating.
Crush the Kasuri methi between palms and add it to the gravy along with the cream.
Start the Instant pot on saute mode, bring the curry to a boil, and simmer again for 2-3 mins (adjust consistency if needed) before turning off the pot.
Finally, garnish with cilantro leaves and Dum aloo is ready! Serve hot with some rice, parathas or naan.