Done. Same day service.
Documents that have to be submitted at the counter
1. Form - http://www.indiacgny.org/documents/1078418906_content.pdf. If parts of the form don't make sense or are confusing, don't sweat it. Do your best, I got the sense it doesn't really matter. No one looks at it that closely.
2. Wife's passport, original
3. My passport, photocopy
4. Our marriage certificate, "notarized copy", according to the Consulate webpage. But since I don't know what they mean by a notarized copy, I took the original and a photocopy. The lady at the counter compared the original to the copy and returned the original.
5. Wife's green card, photocopy. The lady at the counter wanted to see the original. She glanced at it and returned it.
6. 3 photographs. The consulate website and the signs at the consulate will state that the photographs have to measure 3.5 cm x 3.5 cm with white background However, I found it next to impossible to find a photo studio that would produce a passport photo of this size. We took 2 inch x 2 inch photos and it turned out so did everyone else. The Indian consulate will accept these photos but they will cut out a 3.5 cm x 3.5 cm portion of it and use that in the actual passport. The result looks awkward and amateurish. I advise you make your own photo with a digital camera and photo printer.
7. $20. Cash or certified check.
Procedure at the consulate
The counter opens at 9:15am and stays open for 3 hours, till 12:15pm. If you're in line but get to the counter at 12:16pm, you're sh1t outta luck. So make sure you get there no later than 8am, the line can get long and rowdy so you want to be there early. When they open the gate (approx 9am), you will enter the consulate and see a sign that seems to say that visa applicants should go right and passport applicants go left. Do not go left. Go right. The security guard sits in the visa area and you have to tell him you're there for a passport issue. He will give you a number. Once you have the number, go into the passport area and wait. Seating is limited.
They will call your number, you will go up and hand in the papers. If all is ok, they will give you a reciept and tell you to come back the same evening at 4:30pm. The lady will tell you to come to that same counter to pick up the passport.
Do not come back at 4:30. Come back at 3:30. There will be a line. They hand out passports for 45 minutes starting 4:30pm till 5:15pm and again, if you end up at the counter at 5:16pm, you're sh1t outta luck. So come early and queue up in front of the same counter as the morning. A nice man from the consulate may come to you and tell you that you can stand in any line you want. Don't listen to him! The counter that took your application is the counter that will return your passport. If you listen to any consular officials and stand in the wrong line, you'll end up going back to the end and that will mean you will almost definitely miss the 45 minute window.
That's all I can think of. Good luck to anyone doing this and if there are any questions, post replies to this thread.