Grind grated coconut, cardamom, cloves, red chillies, cummin seeds, fenugreek seeds, coriander seeds, cinnamon, nutmeg and cashew nuts to a smooth paste.
Heat ghee or oil in a kadai. Add chopped onion and fry till it turns golden brown.
Add ginger garlic paste and fry till a fragrant smell comes.
Add the ground paste and fry till the oil separates at the sides.
Add coconut milk, tomato puree and 1 cup of water.
Add chicken pieces, salt and sugar.
Cover and simmer till the chicken is cooked and the gravy is creamy.
Stir in the lime juice and serve hot with pulau or paratha.