My favourite part is the spoof Fawlty Towers sketch with the Maharajah arguing with the guest. "I'm so sorry, he's from Jalandar" is a classic. The Maharani is on the phone saying "Oh I know!" about twenty times.
I feel that one needs to have watched the series to fully appreciate it as one hour isn't long enough to get to know the characters. But if you know the characters, and you have watched the series, this is incredibly funny.
Of course it's funny, because it's Indian!