Select sauté on the Instant Pot and adjust to normal. Next, add oil.
When the oil is hot add in the potatoes. Let the potatoes sauté for about 5 minutes until they are cooked slightly. Additionally, keep stirring to prevent them from sticking to the bottom of the pot.
Then add in salt, Kashmiri chili powder and water. Stir well. Press cancel.
Close the lid and select manual/high pressure for 7 minutes. When done let the pressure release naturally for 5 minutes. After that quick release the pressure.
Transfer to a serving bowl. Enjoy hot with yogurt or as a side dish.