Take a knife and make a few gashes over the eggs. Sprinkle 1/2 tsp of turmeric powder, red chili powder and some salt over the peeled boiled eggs and the potatoes (read note for instruction of cutting the potatoes). Smear the masala all over the eggs and the potatoes.
Take a tbsp of mustard oil in a kadai and heat it. Lightly saute the eggs and the potatoes in the kadai till the eggs have a nice red crispy skin and the potatoes are a beautiful golden brown.
Use a slotted spoon to take the eggs and the potatoes out of the kadai while draining the oil within the kadai.
Add another tbsp of mustard oil and when it reaches smoking point, add bay leaf, cinnamon, cardamom, dried red chili and cumin seeds.
Watch the spices as they turn brown and start giving out aroma. Add the onions at this point and start frying them. Keep the heat at a medium. Once the onions have become translucent, add the ginger and garlic paste and continue frying.
In about a couple of minutes, add the tomatoes and rest of the turmeric powder and red chili powder and fry the masalas. Sprinkle a little bit of water in case your spices are sticking to the bottom of the pan. But there will be enough water from the tomatoes to make a nice paste of the masalas.
Add coriander powder and cumin powder and continue frying the masalas till oil starts to release from the sides.
At this point, add the fried potatoes and the eggs. Stir them with the masalas for about 2 to 3 minutes. Then add 4 cups of water. Add little bit of salt and let it boil.
Cover and cook for 8 to 10 minutes till the gravy has acquired some body. Sprinkle some sugar and garam masala powder. Simmer the gravy for another couple of minutes. Check the seasoning. Finally add split green chilies and turn off the heat.
The amount of water mentioned here is 4 cups. But you can add more or less depending on how thin or thick you want your gravy to be.
Serve it with some steamed rice and sliced lemons.