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Place the chicken, 2 teaspoons curry powder, 2 teaspoons garam masala, 1/4 teaspoon salt, and 2 tablespoons vegetable oil in a zipper-close bag. Press out the excess air, seal the bag, and massage the spices into the chicken.
Heat a grill pan over medium-high heat; once hot, place the chicken breasts on the pan. Cook 6-8 minutes per side until golden brown and cooked through. Transfer to a cutting board and cut into bite-sized pieces.
While the chicken is cooking, place the onion and tomato in the bowl of a blender and process until pureed. Heat 1 tablespoon of vegetable oil in a large saucepan over medium heat, then add the onion-tomato mixture and allow to simmer for 5 minutes. Stir in the spices and sugar.
Place the cashews and water into the same blender bowl and puree. Transfer the mixture to the saucepan, and add the coconut milk and yogurt. Simmer for an additional 5 minutes over medium.
Turn the heat down to low and add the cooked chicken pieces. Simmer for 5 minutes until warmed through.
Serve with basmati rice and warm naan bread.