Mushroom Curry with Coconut milk (Instant Pot & Stovetop)

Last updated on May 28th, 2025 at 02:57 pm

Mushroom curry with coconut milk - delicious, vegan/vegetarian curry enriched with coconut milk giving it a creamy consistency! It can be made both on the stovetop or in an INSTANT POT. Perfect for flatbreads and dosas, this curry will be your family favorite!

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I used to be a picky eater when I growing up and I wasn't a fan of mushrooms. But my husband loves mushrooms, naturally, I started cooking with it and it sorta grew on me. I still don't eat it but I love the flavor it brings out in gravies, curries, pasta, pizza and so many of our favorite dishes.

That is why I love this curry; it is actually a family favorite and one of my specialties if I say so myself. The next family favorite is this South Indian Mutton Gravy, which is a much simpler curry in terms of spices. Whereas this mushroom curry with coconut milk has a bit more whole spices that are dry roasted and ground to make masala powder.

BTW, give an Indian an ingredient (be it vegetable, meat, or fruit) you'd get curry out of it. Truth! These are some other curry recipes on the blog:

• Butter Chickpeas Curry in INSTANT POT - This is so popular on this blog.
• INSTANT POT Chicken Masala gravy - A semi gravy that literally comes together in 20 minutes. It can be made without an instant pot too.
• South Indian Sambar in INSTANT POT - a popular curry across south India and this can be made with any vegetable you like.
• Mealmaker / Soybean meal Curry recipe - This curry can be made with soy curls as well.
• Keep it simple with this Tomato Curry - it just has tomatoes and madras curry powder and so delicious!

So what goes into this mushroom curry?

Mushrooms of course, lol. I like to use button mushrooms because like I said before, I love its flavor. My husband is so fond of oyster mushrooms so we occasionally make this curry with them. But I haven't tried this with other types of mushrooms, feel free to experiment and lemme know!

So making the masala powder fresh is an important step in this recipe of mushroom curry. It gives this curry a nice aroma, flavor, and taste; this spice powder is one of the main ingredients. The next important ingredient is rich and thick coconut milk, which adds creaminess and sweetness to this curry. I use fresh homemade coconut milk, I've given the instructions for that below.

Serving Suggestions:

This curry is fantastic with whole-grain flatbreads as well as Indian dosas and idlis. Since this is a thick gravy, it is very scoopable with the flatbreads. Also, the sweetness and spiciness complement the flavors of the grains. That being said, you can have this curry with cooked rice, quinoa, or cooked millets.

Storing this curry:

I am always cautious about storing lentils, meat, and mushroom-based dishes for later. They seem to go bad real fast and I am extra careful when it comes to mushrooms. This vegan mushroom gravy is best eaten on the same day and you might wanna refrigerate it in between meals if you live in a tropical climate. If you have leftovers, freeze them in airtight containers. Thaw it overnight in the refrigerator and reheat it.

Special Diets:

This mushroom curry is vegan, lactose-free, gluten-free. It also has a lot of protein from mushrooms and the only fat would be from the 3 tablespoons of oil you use which can be reduced to 2 tablespoons. And the fat from coconut milk is actually good for you. Anyway, that makes this curry a healthy curry don't you think?

Variations and Substitutions:

This mushroom curry / vegan mushroom curry is delicious. But the base is pretty versatile because you can use hard-boiled eggs, soy meal, or chicken in place of mushrooms.

How to make this mushroom curry with coconut milk/ vegan Mushroom gravy:

This mushroom curry with coconut milk takes slightly a little more effect. However, it is easy nonetheless and I've broken the steps down for you. Lets make this Vegan Mushroom Gravy recipe!

Extracting Coconut Milk:

You can choose to use store-bought thick coconut milk or use water mixed with coconut milk powder. If coconuts or coconut shreds are available near you, you can choose to make your own fresh coconut milk. In that case, add 400 g of coconut meat or shreds to a blender.

Pour in 150 ml of water and blend it together. Strain it by passing it through a mesh strainer and squeeze out as much milk as you can. Pass it through a muslin cloth to get leftover coconut meat off. Set the thick coconut milk aside. Discard or use the coconut meat in cookies.

Ingredients:

For the spice mix, you'll need:

• 9 Bedgi Chillies, (4 if using regular dried chilies or 12 if using Kashmiri)
• 2 tbsp Whole Coriander Seeds
• 1 tsp Raw Rice, (any medium grain rice)
• ¾ - 1.5 tsp Whole Black Pepper (based on your preference)
• 1 tsp Cumin Seeds
• 1.5 tsp Fennel Seeds
• 1 tbsp Split Roasted Gram
• 1 inch Cinnamon Stick, (if not available, use garam masala)
• 2 Cloves, (if not available, use garam masala)
• 2 Cardamom Pods, (if not available, use garam masala)
• 1.5 tbsp Poppy Seeds
• 1.5 tbsp Chopped Coconut Pieces, or copra

For the curry, you'll need:

• 400 g Button Mushrooms, halved or quartered
• 3 tbsp Peanut Oil, or any flavorful oil
• 2 sprigs Curry Leaves
• 1 or 2 Bay Leaves, fresh or dried
• 2 medium Onions, finely chopped, (approx 200 g)
• 1 tsp Ginger Garlic Paste, heaped
• 2 medium Roma Tomatoes, finely chopped, (approx. 120g)
• 1 tbsp Sea Salt
• 350 ml Water
• 200 ml Thick Coconut Milk, (see notes)
• Cilantro Leaves, for garnish, (optional)

Method:

Spice powder:

• Heat up a sauté pan and dry roast all the whole ingredients except poppy seeds and coconut pieces. Once the spices have warmed up, transfer them to a plate to cool down.
• Add the poppy seeds to the pan and quickly swirl it around the pan for only a few seconds. Careful not to burn it. Transfer to the plate with other spices.
• Next, add the coconut pieces and sauté in low flame until it begins to brown and looks translucent around the edges. Transfer it to the same plate and let all the spices completely cool down.
• Once cool, add them to a blender and blend it until it is reduced to a powder. (as pictured above in the post). Use a spatula to scrape the sides. Transfer to a bowl and set it aside.

For the mushroom curry:

• In a heavy-bottomed saucepan or a dutch oven, add the oil and let it get it hot. Once the oil is hot, add the curry leaves and the bay leaves. Let it sizzle.
• Then, add the chopped onions and let it sauté until the onions turn translucent.
• Next, add the ginger-garlic paste to the onions and give it a swirl. Immediately after, add the chopped tomatoes and salt. Sauté until the tomatoes soften and become mushy.
• Add the ground spice powder and mix it with the onions and tomatoes. Drop all of the mushrooms and mix them to coat. Pour in the water and let it cook until it thickens up a bit and for the flavors to incorporate well.
• Finally, add the coconut milk and bring it to a boil. Garnish with coriander leaves and serve hot!

To make this mushroom curry in Instant Pot:

• Follow the same steps as given above except for the last two steps and the quantity of water. Instant Pot cooking doesn't require that you simmer so there isn't any loss of moisture. You'll get consistent and perfect thickness every time.
• After you put in the mushrooms, pour 200 ml water and 200 ml thick coconut milk. Set the Instant Pot in PRESSURE COOK mode for 8 minutes. Quick Release and serve hot!

Notes:

• Hotness: This is a medium spicy curry where the hotness doesn't overpower other flavors. If you like really hot curries, increase the number of chilies. On the other hand, if you like a milder version of this curry, use a fewer number of chilies.
• Spices: I suggest you don't skip on the spices for this curry. The freshly ground spices are what give this curry a beautiful taste. However, you can substitute the whole cinnamon, cloves, and cardamom with ¼ teaspoon of garam masala.
• Mushrooms: I like to use Buttom Mushrooms, but you can use any type of mushrooms for this curry.
• Other variations: This curry base would suit other main ingredients like boiled eggs and chicken. My favorite is a combination of eggs and mushrooms.
• Coconut Milk: You can use homemade or store-bought coconut milk. You can also use coconut milk powder and thin it down with water.
• Making fresh coconut milk: My personal preference is to use fresh coconut milk. To make 200 ml of coconut milk, I use one medium coconut and about 140 ml of water.
• Storing: This curry is best had the same day. However, if you end up with leftovers, freeze it immediately.

Made this? Got doubts? Let me know what you think in the comments below!