Badam diyea mangsha (beef in rich cashew sauce)

4 tb Vegetable oil
    3/4 lb Potatoes (not Idaho baking)
           -peeled and cut into 2-in
           -cubes
      1    Bay leaf
      1    Whole dried red chili
      5    Whole cardamom pods
      2    Inch cinnamon stick
      2    Whole cloves
      2 c  Finely chopped onion
      2 tb Peeled, minced fresh ginger
      1 tb Minced garlic
      1 ts Seeded, chopped fresh green
           -chile (or to taste)
    1/2 ts Turmeric
      2 ts Ground cumin
    1/4 ts Sugar
      2 lb Beef filet mignon, boneless
           -sirloin, boned T-Bone steak
           -New York Strip, or round
           -steak, or lamb leg or
           -shoulder steak, cut into
           -2x2x1inch cubes
    1/2 c  Water
      2 tb Plain yogurt
      1 tb Raw cashews or almonds,
           -ground in a blender to a
           -coarse powder
    1/2 ts Salt
    1/2 ts Garam masala
           Mild onion rings (garnish)
 
  1. Heat 2tb oil in a pan over medium heat. Fry the potatoes until they turn
  medium brown, 6 to 7 minutes. Remove with a slotted spoon and set aside.
  (Omit this step for a lower-fat dish.)
  
  2. Add 2 tablespoons oil to the pan and heat over medium low heat. Fry bay
  leaf, red chili, cardamom, cinnamon, and cloves for a few seconds. Add
  onion and fry until richly browned but not burnt, 18 to 20 minutes,
  stirring constantly.
  
  3. Stir in ginger, garlic, green chili, turmeric, cumin, and sugar. Add
  meat and water. Lower the heat and simmer, covered, 30 minutes. Add the
  potatoes and simmer, covered, until both meat and potatoes are tender,
  about 30 more minutes. Turn heat very low. Blend in yogurt, nuts, and salt
  and remove from heat. (Prolonged heating will curdle the sauce, detracting
  from its appearance and texture.) Stir in garam masala. Decorate with onion
  rings and cilantro.
  
  From The Flavors of India, by Bharti Kirchner