Take 500 grams of chicken in a bowl. Keep them aside.
Cut 2 onions in fine slices, dice 2 tomatoes and 2 pieces of green chilies.
Now, take 4 pieces of whole dry red chilies, 10 to 12 pieces of black peppercorns, 2 pieces of black cardamom (bari elaichi), 3 pieces of green cardamom, 4 pieces of cloves, 1-inch cinnamon stick, 1 tsp of cumin seeds, and 2 tsp of coriander seeds on a plate.
Dry roast the whole spices in a kadai. Transfer them to a mixer when done. Remove the skin of the black cardamoms and grind them into a coarse powder.
Now, add 1 tsp of Kashmiri red chili powder, ½ tsp of turmeric powder (haldi), ½ tsp of red chili powder, 12 cloves of garlic (whole, peeled), 1-inch ginger (cut into small pieces), 2 tbsp of water and make a smooth paste of all of them.
Heat 2 tbsp of cooking oil and 1 tsp salt in a kadai on a high flame.
Fry the chicken for about 4 to 5 minutes until it changes color. Remove them when done.
In the remaining oil in the kadai, add the sliced onions. Fry them over a high flame until they turn slightly golden.
Add the diced tomatoes and broken green chilies. Cook until the tomatoes become soft and mushy.
Make a fine paste of it.
Now, take an earthen pot and heat 2 tbsp of cooking oil and put in 2 pieces of bay leaves and the skins of the black cardamom. Then, add the masala paste to it. Check doneness.
Add the onion-tomato paste and cook until the masala gravy releases oil and it changes to slightly reddish in color. Reduce the flame to medium when done.
Now, add the fried chicken pieces and salt to taste. Mix nicely. Add ½ a cup of lukewarm water to it.
Cover the handi and cook on a medium flame for 15 minutes. Stir it gently after 15 minutes. Cover and cook it for another 15 minutes.
Now, add ½ tsp of chicken masala powder and a handful of finely chopped fresh coriander leaves and mix nicely. Cover and cook it for 10 minutes more. Check the doneness finally.
Your tasty and spicy chicken handi is now ready. Serve hot.