Heat 2 tbsp oil in a kadhai. Add 500 g chopped lauki, ¼ tsp turmeric powder, ¼ tsp red chilli powder, and salt.
Mix well and cook uncovered for 4–5 minutes, stirring occasionally. Cover and cook for 5–6 mins until 80% cooked and lightly golden. Set aside.
In the kadhai, heat 1 tbsp oil. Add ¼ tsp hing and ½ tsp cumin seeds.
Once they splutter, add 1 tsp ginger garlic paste and sauté for a minute. Add 1 cup chopped onions and cook until golden.
Add ¼ tsp turmeric, ¼ tsp red chilli powder, and 1 tsp coriander powder. Mix well.
Add 1 cup chopped tomatoes, salt, and cook for 4-5 minutes until soft. Add a splash of water, mash lightly, and cook for 1-2 minutes.
Add ½ tsp garam masala, 1 tsp crushed kasuri methi, and ¼ cup chopped capsicum. Mix, cover, and cook for 1–2 minutes.
Lower the flame and slowly stir in ½ cup whisked curd. Cook until it blends well, thickens, and the oil separates.
Add ½ cup water and the fried lauki. Mix well, cover, and cook for 8–10 minutes until soft. Lightly mash a few pieces if desired.
Turn off the heat. Add fresh coriander leaves, mix well, and serve hot with roti, paratha, or rice.