Heat oil and ghee in a heavy-bottomed pot over medium heat. Add whole spices (bay leaves, cumin seeds, peppercorns, cardamom, cloves, and cinnamon) and sauté until fragrant, about 1-2 minutes.
Add sliced onions to the pot and cook until golden brown, stirring occasionally, about 12-15 minutes.
Add crushed garlic and ginger to the onions and cook for another 2-3 minutes until fragrant.
Add chicken pieces to the pot and cook until lightly browned on all sides, about 8-10 minutes.
In a small bowl, whisk the yogurt until smooth. Add it gradually to the pot along with chopped green chilies, stirring constantly to prevent curdling.
Add all ground spices (coriander, cumin, red chili, turmeric, and paprika) and salt. Mix well and cook for 3-4 minutes.
Add enough water to barely cover the chicken. Bring to a boil, then reduce heat and simmer covered for 20-25 minutes until chicken is tender.
Remove from heat and stir in garam masala, nutmeg powder, and diluted kewra or rose water.
Garnish with chopped cilantro and blanched almonds if using. Serve hot with basmati rice or naan.