It all depends on your tolerance of chile pepper. I find Kashmiri fairly mild , but you might find it hotter, so next time, as you suggest, just use less.
Our tolerance is high. We eat chilli fresh, dried or powdered regularly. At least 1 meal a day features them, though admittedly we don't eat them for breakfast. Ordinarily we'll order the hot stuff off menus (Indian, Chinese, Japanese, Thai, Vietnamese and even Mexican here in Canberra, Melbourne or Sydney) and staff will check we know it's "hot" yet it isn't hot to us normally.
It is just this chili powder is not mild. And I was under the impression (false impression?) that Kashmiri chilli powder was a mild chilli powder. It even says medium hot on the back of the packet, not mild. It is hotter than the hot chilli powder we normally use a full heaped tsp of in my usual Indian recipe. We're not exactly beginners with chillies but not in
Yorky's league either.
Mind you having said all that, I realise, retrospectively, that it could be the 8 red fresh chillies that also went in that were not as mild as they usually are either. It is only 4 servings, but MG's recipe says to add 2 birds eye chillies for 2 servings. Choice was limited at the supermarket last week so I just doubled the chillies up due to their larger size assuming that they were not as spicy hot.
I guess the answer is for hubby to take me out for a meal this weekend to our Vietnamese restaurant and me order their Laksa which is one of their hotter dishes and see how I fair. Good excuse for a meal out.