Boil potatoes in their jackets till cooked but firm. Plunge them into cold water for a minute. Peel them & then cube them. Sprinkle over the salt & turmeric. Toss to coat all the pieces evenly.
Heat oil over medium high heat. When very hot, add the potatoes & fry, turning & tossing, for 5 minutes. Sprinkle the sliced chilies & 2 to 3 tb of water over the potatoes. Stir carefully. Cover the pan & let the potatoes steam over low heat for 10 minutes or till they are completely tender. Uncover & continue frying, turning regularly, till all remaining moisture is evaporated & potatoes are slightly browned. Serve with any dal.