Switch on the Instant Pot. Set the SAUTE mode ON for 10 mins.
Add oil to inner pot, once the display shows HOT, add oil.
Next add dry whole spices and cumin seeds.
When seeds crackle, add chopped onions, saute for 1-2 mins, then add coarsely crushed ginger garlic and green chillies.
Saute till onions start turing light pink. If it is sticking to the base of inner pot, add 2-3 tbsp of water at a time to deglaze the base. Scrape to make sure nothing is sticking to base.
Add finely chopped tomatoes,red bell pepper, cashews, garam masala,salt, red chilli powder and about¼- ½ Cup water.
Cancel the SAUTE MODE. Cover the lid and seal the Instant Pot. Set the PRESSURE COOKER MODE ON. Set the time for 5 mins.
Once the timer goes OFF, Wait for 1-2 mins. then do QUICK PRESSURE RELEASE.
Open the lid, check masala. Take out bay leaf and cinnamon stick.
Blend the masala in fine puree, using hand blender. Or, transfer it to a blender jar once it cools a bit.
Switch ON the SAUTE MODE again for 5 mins. add sugar, yogurt, kasuri methi(dried fenugreek leaves) , salt and mix well.
Cook for 1-2 mins till masala boils lightly.