In a large bowl, take 1 cup of sago pearls and rinse it under the running water. Do this for 3 to 4 times and soak it in water for at least 4 to 5 hours or overnight.
After 5 hours, if it is getting mashed up easily, sabudana is ready to be cooked. If it is still stiff from the inside, let it sit again for 1 hour or more.
Now, drain off the water completely and keep aside for 10 to 15minutes.
Till then, roast the peanuts in a pan till it changes its colour and then grind it to coarse powder either in mortar-pestle or mixer grinder.
Add the crushed peanuts into the sabudana bowl and salt as per taste and mix it nicely.
Now, heat oil in the pan and add jeera, saute till it splutters and turns aromatic.
Then add chillies and saute till it turns crispy and add the chopped potatoes in the pan and mix it nicely.
Sprinkle a tsp of salt over potatoes as it helps in cooking faster and gives a savoury taste to potatoes.
Cover and cook the potatoes for about 7 to 8minutes till it turns soft and stir it in between.
When potatoes are cooked, add the mixture of sabudana and crushed peanuts and mix well with the potatoes.
Cook sabudana for 4 to 5 minutes till it turns translucent. Do not mash the sago pearls or sabudana with a spatula while stirring.
Add the chopped coriander leaves and mix all the ingredients together and cover and simmer on low flame for 5 to 6 minutes.
Add lemon juice in the sabudana khichdi. This is optional.
Sabudana khichdi is ready to be served hot as a single dish or accompanied with dahi or chutney.