Add 3 tbsps of ghee or oil in a pan and fry potatoes till they are almost cooked. It takes around 10 mins. Set these aside and fry the onions until golden like fried onions. Set these aside as well. You can also par boil the potatoes and use, if they are from cold storage, otherwise they will be uncooked in the biryani.
Pour ¾ cup curd to a mixing bowl. Add red chili powder, turmeric, ginger garlic paste, half of the fried onions, salt and biryani masala. Mix this very well and check the spice and salt. If needed add more.
Next add the cooked or fried potatoes to the marination ingredients. Marinate for at least 30 mins or until the rice gets cooked. Keep this aside.
Wash and soak rice for 20 to 30 minutes.
Add bay leaf, shahi jeera, cardamoms, cinnamon, salt and oil to 4 cups of boiling water. When the water begins to boil rapidly, add the drained rice. Cook until it is done al dente or 90% cooked, not mushy. Drain off the rice to colander and set aside.
Pour ghee to the biryani pot or pan. You may use the same ghee you used for frying onions. Add green chilies, bay leaf, cardamoms, cinnamon, cloves, shahi jeera and star anise.
When the spices begin to splutter, add the marinated potatoes along with the yogurt, cook till the oil begins to separate and potatoes are tender, just cooked and not mushy. At the end a thick gravy should be remaining. Lower the flame.
On another burner, heat a tawa for dum process.
Sprinkle coriander and mint leaves to the cooked mixture. Layer rice evenly, then the remaining fried onions, again the coriander and mint leaves, pour the saffron milk evenly all over.
Seal the rim with an airtight lid or foil, for the steam to be trapped inside.
Transfer the potato biryani pot to the hot tawa. Cook for 10 to 12 mins on a medium to low flame. Switch off the stove. Leave the pan covered for another 10 to 20 minutes for the flavors to enhance.
Serve aloo dum biryani with a raita.