Drain the soaked cashews. Transfer them to a blender along with the grated coconut, fennel seeds, chopped green chilies, and 3 tablespoons of warm water. Blend on high speed until a completely smooth, thick paste forms. Set aside.

Heat the oil or ghee in your heavy-bottomed deep pan over medium heat. Add the bay leaf, cinnamon stick, crushed cardamom pods, and cloves. Fry for 30 seconds until they release a warm, sweet aroma. Add the chopped onion and cook for 5 to 6 minutes, stirring occasionally, until they are soft and light golden at the edges.

Stir in the ginger-garlic paste and cook for 1 minute until fragrant. Add the chopped tomato, turmeric powder, coriander powder, and salt. Cook for 3 to 4 minutes, stirring and mashing the tomatoes with your spatula, until the tomatoes soften completely and the oil begins to separate at the edges of the pan.

Add the 3 cups of mixed vegetables (excluding the peas) to the pan. Toss them with the spice mixture for 2 minutes to coat them well. Pour in 1 1/4 cups of water, cover the pan with a lid, and bring to a simmer. Reduce the heat to medium-low and cook for 10 to 12 minutes, or until the vegetables are fork-tender but still hold their shape.

Reduce the heat to low. Stir in the prepared cashew-coconut paste, green peas, and garam masala. Add the remaining 1/4 cup of water if the gravy is too thick. Simmer uncovered on low heat for 4 to 5 minutes, stirring frequently to prevent the cashew paste from sticking or scorching on the bottom of the pan.

Turn off the heat. Remove the bay leaf and cinnamon stick if desired. Stir in the chopped fresh coriander leaves. Cover the pan and let the korma rest for 2 minutes before serving hot.