Clean and wash the chicken pieces. In a pan take enough oil to deep fry sliced onions. When heated, add sliced onions and fry till they become light brown. Now take them out and crush them (with hand) and keep aside.
Remove the oil from the pan leaving about 4 tbsp in it. Now add cardamoms, cloves, cinnamons, bay leaves, chicken pieces and fry on medium heat for about 7 to 10 mins.
Add ground ginger, garlic. Again fry for 5 mins.
Now add curd and stir nicely.
Add onion paste, red chili powder, salt, garam masala powder, crushed deep fried onions and sugar (optional). Saute for a few minutes.
Transfer it to a pressure cooker add 2 cups water and let it cook (one whistle). Before serving add nutmeg powder. When done serve it hot with parathas.