Wash & clean sago seeds or tapioca pearls, and soak in water. It will puff up after absorbing water. Sago seeds need to be soaked in water for 2 to 3 hours, or it will be better if you can soak them overnight. Always use 1:1 ratio of sabudana and water. To check if it has been properly soaked, press a pearl between your thumb and index finger. You should be able to smash it easily.
Take a pan and heat oil. Put cumin seeds and saute till brown. Now put green chilly and stir. Add Sago and lower the flame. Then add potato, peanuts, coconut, salt and sugar. Cover and cook them for some minutes.
Before serving, season with coriander leaves for better taste.
Saboodana Khichadi can also be prepared for breakfast.