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Place peeled potatoes in a steamer basket in inner pot. Add water.
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Close the instant pot lid and turn pressure valve to seal. Cook on manual high pressure for 10 minutes.
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Allow for a quick pressure release.
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Remove steamer basket, discard remaining water and add cooked potatoes back to the Instant Pot bowl.
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Add butter, sour cream and milk to the potatoes and mash inside the instant pot.
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Salt and pepper to taste.