Pressure cook the mutton pieces (2-3 whistles; meat should be 3/4th cooked) along with the rest of the ingredients and a little water till soft and tender.
Keep a large non-stick handi (deep-bottomed pan) on medium heat and add ghee and oil.
Once the oil has become moderately hot, add bay leaf, cloves, cardamom, cinnamon and peppercorns and crackle
Then add the sliced onions and sauté.
As the onion becomes translucent, add the ginger-garlic paste and sauté again.
Add curry leaves and whole chillies. Saute again.
Once the onions have turned golden brown, add sliced tomatoes and sauté again for 2 minutes on high flame.
Turn to medium heat and add chopped coriander leaves and mint leaves.
As the oil clears, add turmeric powder and red chilli powder.
Add curd and then lower the heat.
Next, add the cooked mutton pieces. Measure the broth and add this too to the masala.
Add the remaining amount of water (water: rice ratio is 2:1 if basmati or long grain rice is used.)
Add salt to taste and bring to boil.
Add the washed rice and mix well.
Turn to high heat and cook covered for 5 minutes.
Remove lid and mix well, turn heat to low and cook till the rice is done and all the water is absorbed.
Turn off heat and let sit for a while before removing the lid.
Garnish with chopped coriander leaves, fried onions and cashewnuts. Serve hot.