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In bowl, whisk yogurt, coriander, cumin, chili powder, garam masala and sugar. Set aside.
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Heat oil in stir fry pan over medium heat. Cook cloves, green cardamom, black cardamom, peppercorns, cinnamon stick and bay leaf for about 10-15 seconds.
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Add yogurt mixture and onion-cashew puree (from gravy prep). Mix well. Cook for about 6-8 minutes on medium-low heat until mixture starts to bubble.
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Add cooked vegetables and mix well. Simmer for about 2-3 minutes. Note: If you’re serving this dish with rice, you might want this gravy to be a little runny. Add the reserved liquid from cooking the vegetables, a few tablespoons at a time, until desired consistency is achieved.
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Taste and add salt as needed. Serve hot with naan, roti or steamed rice.