Heat the oil in a large frying pan. Add cinnamon stick, cloves, bay leaves and cardamom pods. Saute 2 minutes then add onions. Cook until onions are soft, about 5 minutes.
Add the garlic ginger paste, coriander, turmeric, chilli powder and tomato paste. Simmer 5 minutes, stirring. Add chicken, salt and pepper to taste and water. Bring to a simmer and cook 20 minutes until chicken is done.
Stir in the crushed cashews and simmer 3 more minutes. Serve hot, garnished with coriander leaves.