Heat oil in a nonstick pan. Add mustard seeds and allow them to pop. Add green chili, cubed pumpkin, and salt. Mix well and cooked covered on low medium heat for 2 to 3 minutes or until the pumpkin cubes are cooked soft.
Allow the cooked pumpkin to cook down to room temperature. In the meantime whisk yogurt, salt, and sugar.
Add cooked pumpkin to the yogurt. Garnish with cilantro and serve.
Store in the refrigerator until you are ready to eat. Mix gently before serving. Serve raita with roti or parathas. You can also enjoy Pumpkin raita with khichdi or vegetable biryani.
Pumpkin raita is best served fresh. Any leftovers can be refrigerated for 2 days in an airtight container.To make this ahead, the pumpkin can be cooked and refrigerated for 2 to 3 days. Simply add to yogurt when ready to serve.