Potatoes and Tomatoes Cooked with Fresh Coconut

3 medium sized potatoes
4 Tbsp vegetable oil
6 cloves garlic, minced
1 whole dried hot red pepper
1 tsp. whole cumin seeds
1 ½ cup freshly grated coconut
½ tsp ground turmeric
2 tsp ground cumin seeds
1 ¼ Lbs. Fresh ripe tomatoes, peeled and diced (or 1 16-20 oz can)
2 tsp salt
2 tsp sugar
1 tsp red wine vinegar

Peel the potatoes, then cut into ¾ inch dice and put into a bowl of cold water.
Heat the oil in a heavy 3 quart pot over a medium-high flame. When hot, put in the minced garlic. Stir for about 5 seconds. Now put in the red pepper and the cumin seeds. Stir for another 3 seconds. The garlic should brown slightly, the red pepper should darken, and the cumin seeds should sizzle. Lower the heat to medium, put in the grated coconut and stir it around for 10-15 seconds.
Drain the potatoes. Add them as well as the turmeric, ground cumin, tomatoes (including any juice that may have accumulated or the juice in the can), the salt, the 1 ½ cups water. Bring to a boil. Cover, turn heat to low, and simmer for about 45 minutes, or until potatoes are tender. Stir gently every 7-8 minutes during this cooking period.
Put in the sugar and vinegar.
Stir again and cook, uncovered, for 1 minute. Serves 6.

(Madhur Jaffrey's)