1. Wash soaked dal with few changes of water. Place dal, baking powder and salt in a food processor or blender and grind to a smooth thick paste. Add a little water at a time if it is difficult to grind, continue grinding, this will incorporate air and make the paste lighter in texture. Leave it to rest for 15 -20 minutes.
2. Heat oil in a deep fryer or karahi. Test the temperature by dropping a small piece of paste into the hot oil. It should rise to the top at once.
3. Drop carefully a tablespoon full of paste into the hot fat. Fry to a golden color, turning once or twice. Remove from oil with a slotted spoon and place on absorbent kitchen paper. Fry 4-5 dumplings at a time.
4. Ten minutes before serving soak the dumplings in warm water. Press the dumplings between the palms carefully to squeeze out the water.
5. Whisk yogurt with 1\4 cup water, chili powder, salt, garam masala and garlic to make a smooth paste.
6. Arrange the dumplings in a serving dish. Pour the seasoned yogurt over it.
7. Garnish with Chat Masala and Sweet Imli Chutney.