Soak the dried beans overnight; wash well the next day and drain.
In a large, heavy bottom pot, heat oil to medium and add the dried bay leaf and red chillies. Then add the grated garlic and ginger; sauté for a few seconds till the rawness of the aromatics goes away (take care not to burn).
Add the onions and sauté till softened and takes on a light brown colour.
Next add the chopped tomatoes and continue to sauté till the tomatoes break down and the whole mixture turns slightly mushy.
Add the tomato paste and mix well to combine.
Next add all the spice powders, sugar and season with salt. Mix well to combine and sauté on low heat till the whole masala comes together and oil starts to leave the sides.
Add the drained beans and mix well to combine and add 2 cups water. Cook till the beans are done (the beans must be slightly mushy yet have a bite).
Taste and season accordingly. Add ¼ cup milk and mix well to combine.
Serve with lemon wedges and yoghurt drizzled on top.