Heat 2 tablespoons oil in a large skillet over medium heat. Fry potatoes until they turn medium brown, about 5 minutes, turning often. Remove with a slotted spoon and set aside.
Add the remaining oil to the skillet and heat over medium low heat. Add sugar and stir until it turns slightly brown. Fry bay leaf, black mustard seeds and cumin seeds until they start to crackle. Add turmeric, ginger and garlic and stir several times. Add tomatoes, salt and water. Add potatoes, red chilli paste, ground cumin and coriander. Simmer, covered, for 10 minutes. Add cauliflower and simmer, covered, until both cauliflower and potatoes are done, another 10-15 minutes: the cauliflower should be crisp-tender. Add peas and simmer, covered, 1 more minute. Remove from heat.
Blend in garam masala. Let stand covered for a few minutes to help develop the flavours. Sprinkle lemon juice and fresh coriander on top and serve.
Red Chilli Paste
Dried red chilli, made into a paste, adds a rich, warm flavour and a mellow hotness to a dish. You can roast the chillies first to further enhance the sauce.
Put 2 to 4 whole dried red chillies on an un-greased griddle or skillet over a low heat. Turn as soon as they start to darken on the bottom. Repeat for the other side.
Soak the chillies (roasted or not) in hot water for about 15 minutes or until they are soft. You can remove the seeds to reduce the hotness or leave them in if they are mild. Grind the flesh with a mortar and pestle or in a mini-chopper using 2 teaspoons or so of the soaking water.
Do not substitute commercial red chilli paste, available in asian markets. This paste contains other ingredients and will alter the taste of a dish.