Press SAUTE mode on the Instant Pot. Add oil (or ghee), and once it's hot, add bay leaf, mustard seeds, and cumin seeds, let them splutter.
Next, add green chili, grated ginger, curry leaves, and asafetida. Stir and saute for a few seconds.
Add finely chopped onions, and saute till they turn soft and translucent. Next, add diced mixed veggies (potato, green peas, and carrots). You may add tendli, cauliflower, and eggplant, along with spices such as goda masala, turmeric, red chili powder, coriander powder, and salt. Sauté for a minute. Next, add rinsed basmati rice, saute for 1 minute, and then add water, and mix everything well.
Press the CANCEL button on the Instant Pot. Close the lid on the pot, and turn the valve from VENTING to SEALING position.
Set the pot to MANUAL/PRESSURE COOK (High Pressure) and set the timer to 5 minutes. When the instant pot beeps, let the pressure release naturally for 5 minutes and then quick release the remaining pressure manually.
Remove the lid. Add ghee, roasted cashews (optional), fresh shredded coconut, and coriander leaves. Gently mix everything together. Maharastrian-style Masale Bhath is ready.