Pour some Oil in a pan and fry the Peanuts till they splutter. Add chopped Onion and and Green Chilli pieces to this and fry till they become soft.
Add Tomato pieces, Salt and Turmeric to the pan, mix well, close the lid and cook it till it becomes soft.
Grind this into a smooth paste by adding some water.
Heat some Oil in a pan for the Curry. Add peeled Potato pieces, Turmeric, Salt and fry them in a low flame. Close the pan with a lid and fry them till they become golden brown.
Add Capsicum pieces, Onion pieces and fry for 2-3 minutes.
Add the Groundnut paste, Water, Chilli powder and cook it on a medium flame for 7-8 minutes. Add Garam Masala and chopped Coriander to this curry. Leave it on the flame for 2-3 minutes. Now, the Potato Capsicum Curry is ready to serve.