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Place the cashews in a bowl and cover with room temperature water. Add a tsp of salt and mix to dissolve. Cover and leave the cashews to soak overnight (up to 24 hours).
When ready to cook the cashews - drain them and leave aside.
Heat about a tbsp or two of oil (you can use coconut oil or a neutral tasting oil) on medium heat.
Add the chopped onions and saute until translucent.
Add the bay leaves/curry leaves and saute for a few minutes until it becomes fragrant.
Add the cashews, curry powder, cayenne pepper, sugar and a generous pinch of salt and the coconut milk. Mix to combine.
Cover and let it simmer for 45 minutes. Check from time to time to make sure there's enough liquid in the saucepan - add water if needed. Add salt to taste.
The cashews should be firm, but not too crunchy - almost al dente. Add some water if the gravy is too thick (I added about ½ cup of water). Add the frozen peas and cook until the peas are heated and cooked through and the gravy is simmering - about 10 more minutes.
Serve immediately with rice. This can be made a couple of days ahead and it actually tastes better on the second day.