Heat the kadai or wok on clay stove. (Traditional recipes taste better when cooked on a chullah. However, if you don’t have a chullah at home, you can prepare the dish on your gas stove.)
Pour refined oil into the wok and add 1 tablespoon of ghee to the smoking oil. (If desired, you can prepare the dish using only refined oil.)
Add the whole spices such as cumin seeds, cardamom, black pepper to the oil-ghee mixture.
Once the whole spices release their aroma, add finely sliced onions and fry them until they turn light brown.
Add the chicken pieces to the wok and mix them well.
Cook for a few minutes and then add 2 teaspoons of salt. Mix well.
Continue cooking until the color of the chicken pieces change.
Add ginger-garlic paste and stir well.
Add turmeric powder, chili powder, red chili powder, coriander powder, and cumin powder. Adjust the salt if required.
Mix well and cover the wok with a lid. Since the chicken releases water, you don’t need to add much water to boil the chicken pieces.
After 10 minutes, remove the lid and give the chicken and masala mix a good stir.
Beat yogurt in a bowl to achieve a creamy texture. Add the yogurt to the chicken and continue stirring.
Cover the wok for another 5 minutes.
Add some water. It is better to use warm water at this point.
Add green chilies and place the lid on.
Add garam masala and sprinkle coriander leaves.
Once the gravy thickens, the Dahi Chicken is done.
Serve it with steamed rice, soft and fluffy naan, layered paratha, and pulao.