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Yes, you have read the correctly. It's the name of the largest mosque of Shahrisabz, a town in southern Uzbekistan, and means "blue dome". Interestingly, the building seems to have one dome more nowadays, as wikimedia suggests. Or perhaps they've torn one down.
The stamp shows a statue of Amir Temur (also known as Timur, Tamerlane), conqueror of large parts of Central Asia in the late 14th century.