Using either a mortar and pestle or hand blender, turn the chopped onion, garlic and ginger into a smooth paste.
Heat the oil in a pan that has a tight fitting lid. Add paste and sliced onion and gently fry until sliced onion is soft.
Add whole spices, bay leaves and green chilli and continue frying until spices are fragrant. Add powdered spices and fry for another minute.
Add chicken pieces and stir well to coat with the spice mix. Fry for about 5 minutes.
Turn heat down, place lid on pan and slowly cook chicken in its own juices. If your lid is not a good seal, you may have to add small amounts of water during this step. This stage will take about 45 minutes.
Now add the ketchup and yoghurt to the sauce. Add the yoghurt slowly, stirring as you do. Replace lid and simmer gently for another 15 minutes.
Remove from heat, season to taste and mix in the coriander leaves.
Serve hot with plain steamed rice and or naan bread, with maybe a pickle or raita.