Marinate the chicken: In a mixing bowl, combine the chicken, yogurt, spices, and salt. Mix well and let it marinate for at least 1 hour or overnight in the refrigerator.
Prepare the onion paste: In a pan, heat oil or ghee and sauté the sliced onions until golden brown. Add almonds and cashews. Cool completely and blend into a smooth paste with yogurt.
Cook the chicken: In the same pan, heat oil or ghee and add whole spices like bay leaf, cloves, cardamom, and cinnamon. Add the marinated chicken and sauté until the raw smell of ginger garlic paste is gone.
Add the onion paste: Pour the blended onion paste into the pan and add hot water. Season with salt, garam masala, and coriander powder. Mix well and bring to a boil. Reduce heat, cover, and simmer until the chicken is tender and cooked through.
Adjust consistency and serve: If the sauce is too thick, add some hot water to achieve the desired consistency. Garnish with fresh coriander leaves and serve hot with rice, naan, or roti