In a non stick pan/ pot heat 1 tbsp oil. Add onions and cook until they turn pink and translucent. Now add 1/2 tbsp ginger garlic paste and cook for 30 seconds. Next add almonds and cashews and cook for a minute.
Remove from heat and let it cool. Once it's at room temperature, add this mixture to a blender/ mixer/ food processor and obtain a smooth paste.
Take yogurt in a medium mixing bowl and beat it to get a smooth consistency. Add the above onion paste and salt and mix well. Keep it aside.
Heat oil in a medium sized pot and add bay leaves, cloves, cardamom pods, cinnamon powder and cumin seeds. Cook for 1/2 minute.
Now add the marinated chicken pieces and cook until water evaporates. Check if the chicken is cooked (this can be done by cutting a chicken piece with the spoon. If it easily cuts, that means chicken is cooked.)
Add the yogurt mixture and green chili. Stir continuously until bringing the gravy to a boil. Add water if necessary
Let it boil for another 10 minutes.
Remove from heat and garnish with cilantro.
Enjoy this creamy korma with hot parathas (Indian flatbread) or steamed plain rice.