Check out Pooja Makhijani's wonderful annotated bibliography--South Asia and the South Asian Diaspora in Children's Literature. Pooja covers young adult, picture, folk and fairy, and crossover titles in great detail on her site. Each category lists several books with useful description and information. A great resource!
While you're at it, take a look at Pooja Makhijani's author site, which features interviews, essays, reviews, and teacher resources. It is a beautifully designed site.
While reading through Pooja's site, I ran across an author's blog I learned of through child_lit only yesterday--Mitali's Fire Escape. I'd been meaning to mention it ever since as it is a great writer's blog. Mitali Perkins writes about her experiences as an author and "life between cultures."