Peel the potatoes and cut into small cube like pieces. Peel papaya and cut into thin slices. Add a pinch of salt to both potato and papaya pieces. Keep aside.
Take fresh coconut flesh, peel the hard brown skin, then cut into small pieces. Keep aside.
Heat oil in a pan, fry coconut pieces until they are very lightly browned. In the same oil, fry potato and papaya pieces together until brown.
Take out o and keep aside. In the same oil, add bay leaves and cumin seeds. When seeds start to crackle and change colour, add grated ginger, slitted green chillies and tomatoes.
Stir for 1 to 2 minutes until tomatoes get pulpy. Then add turmeric, cumin, coriander and red chilli powder, mixed with 2 tablespoons . of water.
In medium flame, stir to mix the spices well until oil seperates. Then add fried potato and papaya pieces. Add salt and sugar.
Coat veggies well with spices. Add 1 cup or enough water to cook the veggies. It is a semi dry gravy dishes, so add water accordingly, if needed add more. Add fried coconut pieces now.
When veggies are cooked, check the seasoning. When you have desired amount of gravy, sprinkle ghee and garam masala powder over the gravy.
Mix well and remove from heat. Garnish with fresh coriander leaves if you want. Serve hot with plain rice.