Heat oil in a large pan over medium heat. Add star anise, bay leaf, coriander seeds, and fennel seeds. Infuse for 30 seconds until fragrant.
Add chopped onion to the pan and fry until soft and translucent.
Stir in mixed spice powder and chili powder, followed by tomato puree. Simmer for 2-3 minutes.
Add half of the base sauce and simmer for 5 minutes.
Add fresh methi leaves and remaining base sauce. Cook for 3-4 minutes until leaves wilt.
Gradually stir in yogurt, adding one tablespoon at a time to prevent curdling.
Finish by garnishing with chopped coriander, sprinkling garam masala, and rubbing dried methi leaves over the sauce.