Add 1 cup water to the inner pot. Place steamer basket with potatoes in the inner pot. The bottom of the basket should be above the level of the water. Pressure cook for 1 minute on high pressure and do a natural pressure release.
Cook Potatoes on Stovetop
Add potatoes to a medium saucepan. Add enough cold water to cover by 1 inch. Bring to a boil, reduce the heat to medium-low, cover, and simmer until tender, about 10 to 15 minutes. A knife should easily pierce the potatoes, but it shouldn't be too mushy. Drain.
Make the Stew
Add ½ cup onion, 1 green chilli, 1 tablespoon ginger, 7 curry leaves, ¾ teaspoon salt, and 3 tablespoons water to a medium saucepan. Stir and bring to a boil. Reduce heat to medium-low, cover, and cook until the onions are soft, about 3 minutes, stirring occasionally.
Add the cooked potatoes, ⅓ cup coconut milk, and 1 cup water. Cover and cook until the curry has thickened, and the potatoes are soft, about 6 to 7 minutes.
Using the back of a spoon or ladle, mash some of the potatoes to thicken the stew.
Add ¼ cup coconut milk and heat through, but do not let it boil, or it will curdle. Remove from heat and adjust salt as needed. Drizzle with 1 tablespoon coconut oil (if using) and add 7 curry leaves.
Notes
Note 1: This curry isn't meant to be too spicy. Adjust the quantity of chillies to taste.