Heat 2 tablespoons oil in a large frying pan over medium-high heat.
Add bay leaf, cinnamon stick, cloves and green cardamom.
Sauté for a few seconds or until fragrant.
Add diced onions, garlic cloves, ginger and green chilies.
Sauté, stirring occasionally, for about 2-3 minutes or until onion softens.
Add water. Stir to combine.
Cover and cook for about 5 minutes.
Leave to cool completely.
Place onion mixture and cashews in a food processor.
Process to a smooth paste. Set aside.