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In a food processor, grind onion, garlic, ginger, green chili to a coarse paste.
Heat oil in deep pan or pressure cooker. Add onion mixture and cook stirring often until mixture is medium brown, 5-8 minutes.
Add all spices and saute for 30 seconds. Add grated tomatoes with salt and cook until oil separates (5-8 minutes). Reduce heat to low. Add **yogurt in small batches and stir quickly after each addition to mix in so that it not curdles. Add chicken and cook in masala for 2 minutes.
Add 1 cup water, bring to boil. Reduce heat and simmer until chicken is fully cooked (15-20 minutes). Or if using pressure cooker, add 2/3 cup water, cook under high pressure for 10 minutes. If gravy is too thick, add little more water. If gravy is too thin, boil mixture to evaporate some liquid.
Garnish with chopped cilantro and serve with naan bread. Enjoy!