Wash and rinse the basmati rice. Soak it for about 10-20 minutes.
Prepare the onions, tomato puree, mushrooms, and ginger garlic paste along with finely chopped herbs.
Once done, press the sauté mode on your instant pot and press start. Once the pot is hot, add ghee and oil.
Next add the whole spices listed in the ingredients list. Bay leaf, cinnamon stick, cloves, green cardamom, cumin seeds and fennel seeds.
Once the cumin seeds start to sizzle, add sliced onions, along with one Thai green chili slit in half, cilantro stems finely chopped, and ginger garlic paste.
Sauté until onions soften. Add salt. Next add the tomato puree. Prepare the tomato puree by pulsing two roma tomatoes until pureed. It should yield you about ½ cup tomato puree.
Add the ground spices, Kashmiri red chili powder, cumin-coriander powder and garam masala. Mix it well.
Add sliced mushrooms. Cook the mushrooms without adding any water. If you add water they become slimy. So cook them without adding any water.
Once the mushrooms soften, add yogurt (or coconut milk) and mix it well.
Drain the water from the soaked rice. Add the rice to the pot.
Next add 3.5 cups of water.
Close the instant pot lid. Press Cancel.
Now press Pressure Cook. Select Manual Pressure cook on high pressure for 7 minutes with the pressure valve in sealing position.
Let the pressure release naturally, or quick pressure release after 5 minutes, once the biryani is cooked.
Open the lid and fluff the rice with a fork.
Serve mushroom biryani with side of raita!