Heat a little oil in a pan and then roast the dry xacuti masala dry spices until fragrant. Remove onto a plate and let them cool.
Heat another teaspoon of oil in the same pan and then fry the sliced onions and grated coconut till lightly golden on medium heat.
After the spices, the onions, and coconut have cooled, transfer them into a blender jar and grind to a smooth paste with a little water. Set this Xacuti Masala aside.
In a vessel or pot, add 3 tablespoons of oil and saute one medium chopped onion. Also, add one bay leaf to the onion.
When the onion turns translucent add one chopped tomato and also salt to taste and fry till soft.
Next, add the washed chicken pieces and fry them for a minute or two. Cover and cook the chicken till it is almost done. You can also add potatoes at this stage.
Once the chicken is almost cooked, add in the Xacuti Masala that we blended earlier. Also, add about 300 ml water to make the chicken gravy. At this stage also add tamarind water (a small ball of tamarind soaked in 1/4 cup warm water).
Cover the vessel and allow the curry to simmer for 4 to 5 minutes. Finally, garnish with coriander leaves.
Serve Chicken Xacuti with rice