In a pot, heat oil then add chopped onion, chili, garlic and ginger paste. Mix well and cover the pot. Cook for 5 minutes on medium heat until onions are soft.
Switch off heat then add yogurt. Transfer gravy to a food processor and blend for 2-3 minutes until you have a very smooth this gravy. Set aside.
Remove veggies to a plate and set aside.
For Chicken and Assemble:
In a bowl, mix chicken, salt and flour.
Again in same pot, heat butter on low flame. Add the chicken and cumin powder. Mix well and cook for 5 minutes until color changes.
Add sliced onion and capsicum, saute for 2 minutes until soft.
Now add yogurt gravy, cover the pot and cook for 2 minutes.
Now add cream and cheese to the chicken pot. Mix well and simmer for 2-3 minutes. (Add 2 tablespoons of water to thin out gravy if needed.) Protip:Do not cook on high heat after adding cream.
Add butter and chilies on the sides of the pot and simmer for 1 more minute until oil separates. Served with crispy garlic naan.