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Marinate mushrooms with ginger and garlic paste, ½ cup plain yoghurt, 1 tsp turmeric powder, 1 tsp Kashmiri red chili powder, 1 tsp coriander powder, 1 tsp garam masala powder, and 1 tsp salt.
Blend fried onion, soaked cashewnuts, peeled garlic, 2 tbsp plain yoghurt, and coriander sprigs into a paste.
Heat vegetable oil in a pan. Add bay leaves, cinnamon stick, cumin seeds, and green cardamoms. Sauté until fragrant.
Add 2 tbsp ginger and garlic and sauté.
Add pureed tomatoes and cook until oil separates.
Add the blended paste and cook for a few minutes.
Add 1 tsp turmeric powder, 1 tsp Kashmiri red chili powder, 2 tbsp coriander powder, 1 tsp cumin powder, and green chillies. Cook for 2-3 minutes.
Add marinated mushrooms and cook for 5-7 minutes.
Add 1 tsp garam masala, 1 tsp toasted Kasoori Methi leaves, chopped coriander leaves, julienned ginger, and salt as required. Add warm water as required to adjust consistency.
Simmer until mushrooms are cooked and the gravy thickens.