In a small skillet, dry roast red chili and whole coriander seeds for about 3 minutes and using a coffee grinder, grind it into a coarse powder and set aside.
Heat oil in thick bottom pan or kadai and add cinnamon, cardamom, cloves and bay leaf.
After one minute add chopped onion and green chili and fry for about 4 minutes.
To this add ginger- garlic paste and fry for 2 minutes.
Add chopped tomato to the above mixture and cook for about 15 minutes of until it become soft , mushy and cooked well.
To the tomato-onion mixture add, turmeric powder, coarsely ground red chili-coriander seed powder, cumin powder, salt. crushed kasturi methi leaves( dried fenugreek leaves) and garam masala and cook for about 3 minutes.
To the above mixture add chopped bell pepper and cook for about 5 minutes or until it cooked well but retain it crunch.
Add cubed tofu and gently mix everything so that spicy gravy get coated to tofu pieces.
Finally add chopped coriander leaves and switch off the flame.
Enjoy with roti/ chapathi.
Notes
Instead of Tofu, try with Paneer if you want Kadai paneer.