Grind cashews, cloves, black pepper, cinnamon stick, green chilly and ginger well. Add yogurt to the above mixture and blend it into a fine paste. Keep it aside.
Cut capsicum and onions into thin slices of around 3 inch long. Heat oil in a pan, add cumin seeds.
After the seeds crackle, add onions to it until it becomes golden brown. Now add capsicum to it and stir fry for 5 mins till it becomes tender.
Add the spiced paste, salt and a cup of water and let it cook for 5-7 mins over a low flame.
Garnish it with coriander leaves and serve it hot with pulav or any indian breads.