Firstly, press SAUTE on Instant Pot. Next, add oil, and once it's hot, add whole spices like cumin, bay leaf, cinnamon stick, cardamom, and cloves.
Once they sizzle, add ginger garlic paste and saute for 30 secs.
Then add sliced onions and green chilies, saute for 2-3 minutes until onions turn light brown - stir regularly.
Next, add tomatoes and saute for a minute till they become soft.
Add dry spices like turmeric, red chili powder, coriander powder, and biryani powder, and saute for just 30 seconds. Make sure spices don't burn.
Then add yogurt and mix everything. Also, deglaze the pot. If anything is stuck to the bottom of the pot, scrape it so no burnt bits should be at the bottom.Add the sliced mushrooms and mix again gently. Add rinsed basmati rice, water, salt, and give a stir. Sprinkle some mint and coriander leaves and mix.
Close the lid on the pot. Set the pot to MANUAL/PRESSURE COOK (High Pressure) and set the timer to 5 minutes.
Once the pot beeps, Wait for NATURAL PRESSURE RELEASE (NPR).
Restaurant Style Mushroom Biryani is ready to serve with Onion Raita or plain yogurt.