In a large bowl, combine chicken, yogurt, lemon juice, ginger-garlic paste, 0.5 tsp turmeric, 0.5 tsp cumin, 0.5 tsp coriander, 0.5 tsp chili powder, and 0.5 tsp salt. Mix well to coat the chicken. Cover and marinate in the refrigerator for at least 30 minutes, or up to 4 hours.
Drain the soaked cashews and blend them with a splash of water until a smooth paste is formed. Set aside.
Heat oil or ghee in a large pan or Dutch oven over medium-high heat. Add the marinated chicken and cook for 5-7 minutes until lightly browned on all sides. Remove the chicken from the pan and set aside.
In the same pan, add chopped onions and cook for 8-10 minutes until softened and translucent, scraping up any browned bits from the bottom. Reduce heat if needed to prevent burning.
Add the remaining ginger-garlic paste, 1 tsp turmeric, 1.5 tsp cumin, 1.5 tsp coriander, 1 tsp chili powder, and 1 tsp salt to the onions. Sauté for 1-2 minutes until fragrant.
Stir in the crushed tomatoes and bring to a simmer. Cook for 10-15 minutes, stirring occasionally, until the sauce thickens and the oil starts to separate from the sides.
Add the blended cashew paste, heavy cream, and water or broth to the sauce. Stir well to combine and bring to a gentle simmer. Continue to cook for 5 minutes, ensuring the sauce is smooth and creamy.
Return the cooked chicken to the sauce. Stir in garam masala, crushed fenugreek leaves, and sugar. Simmer for another 5-7 minutes to allow the flavors to meld and the chicken to heat through.
Garnish with fresh coriander before serving. Serve hot with rice or naan bread.
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