Soak dried red chilies in hot water for about 15 minutes. Drain. Transfer to a food processor. Grind to a smooth paste. Set aside.
Heat 3 tablespoons ghee in a large frying pan or skillet over high heat.
Add mutton. Season with salt. Sauté, stirring occasionally, for about 5-7 minutes or until browned.
Add bay leaves, cloves, cardamom pods and cinnamon stick. Sauté, stirring, for about 1 minute or until fragrant.
Add garlic and ginger. Sauté, stirring, for about 2 minutes or until aromatic.
Add onions. Sauté, stirring, for about 2-3 minutes or until soft and translucent.
Add ground turmeric, ground cumin and ground coriander. Sauté, stirring, for about 1 minute or until aromatic.
Add red chili paste, yogurt and lemon juice. Add 1 and ½ cups water. Stir to combine. Season with salt.
Cook, covered, for about 1 and ½ hours or until tender. Add more water if required. Stir in garam masala. Heat through. Remove from heat.
To make the tempering, heat 1 tablespoon ghee in a small frying pan over medium-low heat. Add garlic and ginger. Sauté, for about 1 minute or until aromatic. Pour tempering over the curry. Stir to combine. Garnish with coriander (cilantro) leaves.