Chop 2 Onions finely and make a paste out of the remaining 2. Make paste of kaju and coconut.Heat oil in a pan and put add the dry garam masala ingredients along with bay leaves and red chilli. Add the chopped onion and sautee till the onion turns brown.

Add the chicken and cook for 5 mins in low flame. Add the rest of the masalas. Cook for about 10-12 Mins. Add butter,coconut paste next and cook for about 5-6 mins. Add 2 cups of water and cover with lid. Add salt and cook for a few minutes.