select the sauté function on your instant pot & set the timer for 5 minutes.
once heated, add the oil & urad dal. sauté for about 1 minute, until the lentils change color from white to a light pinkish brown.
add mustard seeds & sauté for an additional minute.
add the remaining seasonings: ginger, turmeric, crushed red chili, bay leaves, & salt. sauté everything for an additional 2 minutes, until fragrant.
add the uncooked rice to the instant pot & stir to mix in the seasonings. rice should develop a faint yellow color from the turmeric.
cancel the sauté function. add dry roasted peanuts, lemon juice, & water & stir.
seal the instant pot, ensuring the steam valve is set to sealing. pressure cook on high for 5 minutes, then allow the pressure to naturally release for an additional 5 minutes.
manually release the remaining pressure. using a kitchen towel, gently turn the steam valve from the sealing to the venting position. once the valve clicks back into place, it is safe to open the pot.
garnish the lemon rice with cilantro & fresh lemon wedges. serve warm with a side of nondairy yogurt.