Wash mushrooms and cut them in two. Heat oil in kadai or wok, add dry red chilly, bay leaf and pepper corns. Sauté for few seconds till red chiily is roasted.
Now add cumin seeds and let them pop for a while. Add chopped garlic and ginger and saute for few seconds.
Add chopped onions and little salt. Sauté till they are half done. Now add red chilly powder, coriander powder and turmeric powder and mix well.
Add fine chopped tomatoes. Mix them well, cover and cook till tomatoes become mushy.
Now add mushrooms and capsicum and crushed kasoori methi. Mix well, cover and cook till mushrooms become soft.
When mushrooms are soft enough add garam masala. Sauté and switch off the heat.
Mushroom masala is ready to serve. Garnish with fine chopped coriander leaves.