Blend onion with a little water to make onion paste. Set aside.
Heat oil. Add ginger & garlic and saute for 30 seconds.
Add onion paste and cook on low flame till light golden (about 3-4 minutes).
Add chicken and cook for a few minutes till it changes color.
Add cumin seeds, coriander powder, salt and white pepper. Cook for a minute.
Blend yoghurt, green chili’s and coconut powder with about 2-3 tablespoons of water to make a paste.
Add green chili & coconut paste to the chicken. Cover the pot and cook on low simmer for about 20 minutes till chicken is tender. Add water if required.
Add sliced capsicums and cook for 30 seconds.
Add cream, butter and cheese. Let it cook for 2-3 minutes till gravy becomes thick and creamy.
Serve hot garnished with sliced ginger and green chili’s.