Heat oil in a heavy bottom pan and add bay leaf, dry red chilli and cinnamon stick.
Once the oil turns aromatic add chopped onion and fry until it is transparent.
Then add the onion paste and cook until the raw smell goes away.
After that add ginger paste followed by garlic paste and cook well.
Stir in the spice powders, including the turmeric powder, coriander powder, and red chilli powder.
Now add the marinated chicken and cook for a few minutes on high heat. Later, reduce the heat to low, cover the pan, and stir occasionally.
Add green chilli while cooking the chicken.
When the oil starts separating and chicken is half cooked add tomato paste, sugar, salt and cook until the raw smell of tomato disappears.
When the chicken pieces are soft and tender, turn off the heat, cover the pan, and set aside for 5-10 minutes before serving hot.