In a pan, heat oil and saute onion till it turns soft. Keep this aside to cool.
Grind sauted onion and soaked cashew nuts to a fine paste. Keep this aside.
Heat a deep pan, pour butter and saute chicken pieces. Add turmeric powder and salt till chicken gets 3/4th cooked.
To this add ginger paste, garlic paste and saute till raw smell disappears. Then add chilly powder, garam masala and saute for few minutes.
Add tomato paste & saute till oil appears. To this add water, salt and boil till chicken gets cooked.
After the chicken is cooked, add onion-cashew paste and mix well. Bring to boil. To this add kasoori methi powder and remove from fire
Garnish with cream and coriander leaves. Serve hot.