After the chicken pieces are well-rested and all the masala preparations are ready, take a kadhai. Add some oil and heat it until it smokes a little.
Now, add the bay leaves, black cardamom, green cardamom, and cloves to the oil.
Stir them for some time in the oil until the fragrance is released from the aromatics.
After around a minute, add the finely chopped onions and stir. Fry them for about 3-4 minutes or until they start to turn translucent.
Next, add in the ginger, garlic, and green chili paste. Combine everything and stir consistently.
Fry them until the raw smell goes away.
Now, take out all the whole spices from the kadhai and then add the cashews and sour curd/yogurt paste.
Stir them nicely with all the other ingredients. Keep on stirring for about 5 minutes.
Add 1/2 cup water and stir. Cover the kadhai with a lid and let the gravy simmer for around 6-8 minutes. Stir it occasionally.
Add salt to taste and sugar to balance the salt. Keep the flame on medium.
After about 6-8 minutes remove the lid and stir consistently by scraping from the sides and bottom.
Cook it until you see the oil is separating out of the gravy.