In a small skillet, heat 2 tablespoons of the mustard oil. Add wadi and fry until golden brown. Remove to a coffee/spice grinder. Coarsely ground.
In a large skillet or wok, heat remaining oil. Add bay leaves, cinnamon and cumin seed. When the cumin seeds start to change color, add chiles, ginger and tomatoes. Cook on high heat until they turn mushy, about 3-4 minutes..
Add bottle gourd, turmeric , ground cumin, red chile powder and salt.and saute for 1 minute. Stir to combine. Cook, covered for about 15 minutes, stirring occasionally.
Add ground wadi.
Serve with rice or paratha.