In a wok (or kadai), heat some oil or ghee.
Once the oil is hot, add the whole red chilies, bay leaf and cumin.
Heat for a couple of minutes, until the cumin starts to sputter slightly.
Add the chopped onions and sauté until lightly browned.
Add the ginger and garlic paste and sauté again.
Add the can of tomatoes and mix well. Cook, stirring regularly until the liquid leaves the sauce and it thickens.
Add the Kashmiri chili powder, turmeric powder, garam masala, coriander powder and mix well.
Cook for a couple of minutes, stirring untill the sauce is mixed well with the spices.
Add the cashew nut paste and mix well.
Add the chicken pieces, salt and mix well.
Cook on low to medium heat until the sauce has reduced, and the chicken is done. Keep aside.
In a separate saucepan or frying pan, heat some oil or ghee.
Once the oil or ghee is hot, add the bell peppers and onion. Sauté until the onions are slightly brown. Turn off the heat.
Transfer the sautéed bell peppers and onions to the wok with the chicken, stir and mix well to combine. Simmer the curry for 2 minutes more.
Garnish with a squeeze of lime (optional) and chopped fresh coriander leaves.