Wash and slit brinjals in half keeping the stem intact. Keep in water. Wash and thoroughly scrub baby potatoes and keep aside. Heat oil in kadai, add garlic and sauté on medium heat till light golden.
Add onions and continue to sauté for three to four minutes. Add tomatoes and salt and cover and cook on low heat for two minutes. Add potatoes and cook covered on low heat for four to five minutes stirring occasionally.
Add brinjals, red chilli powder, coriander powder, turmeric powder and sugar, stir to mix well, add one fourth cup of water, cover and continue to cook till potatoes and brinjals are almost done.
Add dill and garam masala powder, adjust seasoning and cook for another three to four minutes till done or till oil surfaces on top. Serve hot.