Grind cashews and yogurt into a thick paste and keep aside.
Heat a few drops of oil and saute the onions, ginger and garlic until they turn slightly brown. Take off the heat.
Dry-roast the remaining ingredients listed for grinding.
Add the roasted spices to the sauteed onions, add water and grind into a fine paste.
In the same vessel, heat enough oil and fry the bay leaves and fennel seeds until they turn brown. Add the crushed tomato, mixed vegetables and turmeric powder. Saute everything for a few minutes until the vegetables get half cooked.
Add the onion paste and salt and cook everything until the oil separates slightly.
Add the yogurt-cashew paste and enough water and cook the gravy on medium flame until the vegetables are well cooked.
Garnish with coriander leaves. Serve with rice or roti.