Heat oil or ghee in a pan. Add cumin seeds and let them splutter.
Add chopped onions and sauté until they turn golden brown.
Add ginger-garlic paste and sauté for a minute until the raw aroma fades.
Add sliced mushrooms and sauté for 3-4 minutes until they shrink and release moisture.
Now, add chopped tomatoes and green chili (if using). Cook until the tomatoes soften.
Add garam masala, turmeric powder, red chili powder, and salt. Mix well and cook for 2 minutes.
Add soaked and drained basmati rice. Stir gently to coat the rice with the spices.
Pour in 2 cups of water and bring the mixture to a boil.
Reduce the heat, cover the pan with a lid, and let it simmer for about 15-18 minutes or until the rice is cooked and water is absorbed.
Once done, turn off the heat and let it sit covered for 5 minutes.
Fluff the Mushroom Pulao gently with a fork.
Garnish with fresh coriander leaves (if using) and serve this delightful Mushroom Pulao to your little ones!