Heat mustard oil in a pan and add the red chilli, bay leaf,cinnamon,cardamom,cloves,mace,chopped onions & ginger garlic paste. Fry for some time until the onion turns light brown.
Then add red chilli paste,coriander seeds paste,turmeric powder,salt and the chicken. Cook on low heat for sometime. If the chicken sticks to the pan,add a little water otherwise cook for 5-10 mins and then add water.
Bring to boil.Cook on medium heat for another 10-15 mins,sprinkle garam masala on top and take off the stove.
Garnish with chopped coriander leaves and serve hot with steamed rice or rotis.