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Take the sabudana in a large pot. Wash it with cold water. When you start washing it will looks cloudy
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Wash until the water runs clear. This helps get rid of excess starch which makes the khichadi clumpy when cooked.
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Add water just to cover the sabudana and a little over.
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Now let it soak for at least 7-8 hours. I end up soaking it overnight since I make this mostly for breakfast.
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About an hour before you plan to make the khichadi, take the milk and sprinkle it over the soaked sabudana. Using fork separate the grains and leave aside.
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Make powder with roasted peanuts
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Make paste with the green chilies & 1 tbsp of cumins seeds in a mortal & pestle, you can also use a blender.
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Add peanut powder, chili mixture, salt & Sugar to the soaked sabudana and mix well.
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In a pan heat oil, add cumin seeds. Add some green chili pieces and saute till the cumin seeds are brown.
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Add sliced potatoes, add salt to the potatoes and cover.
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Cook until the potatoes are done.
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Add the sabudana mixture and cook. Cover for only a couple of mins and stir constantly, this will prevent clumps from forming. The easiest way to know when it is done is to check if the pearls are translucent.
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Add the ghee and mix well. Traditionally it is cooked in ghee, but if you are trying to avoid it then adding just a couple of tbsp at the end is a good solution. This gives the flavor of ghee but you dont have to cook solely with it.
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Garnish with chopped cilantro, fresh grated coconut and yogurt or a lime wedge.