Wash, boil and peel the baby potatoes. Keep aside for cooling.
Once cool, heat the oil in a non-stick pan, add the potatoes and salt, mix well and saute on a medium flame for 3 to 4 minutes till slightly browned. Keep aside.
Heat the oil in a kadhai or heavy bottom pan, add the onions, bay leaves and saute on a medium flame for a 2-3 minutes till onions turn translucent.
Add the ginger-garlic paste, mix well and cook on a medium flame for 1 minute.
Add the spice paste and mix well. Saute further on a medium flame for 1 minute.
Add the salt, tomato pulp, mix well and cook on a medium flame for 2-3 minutes, stirring continuously so that it doesn't stick to the bottom.
Add the browned potatoes and milk, and let the curry simmer for 5 to 6 minutes, stirring occasionally.
Serve hot garnished with coriander.