Heat oil and sauté onion, tomato, ginger, garlic, green chili, and cashews until the onions turn translucent and the tomatoes become slightly mushy.
Cool and grind the mixture with coconut and poppy seeds.
Heat oil and splutter mustard seeds, fennel seeds, bay leaf, and cinnamon.
Sauté onion, garlic, and curry leaves.
Add the ground mixture, sambar powder, salt, and water; bring to a rolling boil.
Add coriander leaves and mix well.