Chicken Makhani (Indian Butter Chicken)

1 tablespoon peanut oil
1/4 white onion, chopped
2 tablespoons butter
2 teaspoons lemon juice
1 tablespoon ginger garlic paste
1 teaspoon garam masala
1 teaspoon chili powder
1 teaspoon ground cumin
1 bay leaf
1/4 cup plain yogurt
1 cup half-and-half
3/4 cup tomato sauce
1/4 cup tomato paste
1/4 teaspoon cayenne pepper, or to taste
1 pinch salt
1 pinch black pepper

1 tablespoon peanut oil
1 pound boneless, skinless chicken thighs, cut into bite-size pieces
1 teaspoon garam masala
1 pinch cayenne pepper

Heat 1 tablespoon oil in a large saucepan over medium high heat. Saute onion until soft and translucent. Stir in butter, lemon juice, ginger-garlic paste, 1 teaspoon garam masala, chili powder, cumin and bay leaf. Cook, stirring, for 1 minute. Add tomato sauce and paste, and cook for 2 minutes, stirring frequently. Stir in half-and-half and yogurt. Reduce heat to low, and simmer for 10 minutes, stirring frequently. Season with salt and pepper. Remove from heat and set aside.
Heat 1 tablespoon oil in a large heavy skillet over medium heat. Cook chicken until lightly browned, about 10 minutes. Reduce heat, and season with 1 teaspoon garam masala and cayenne. Stir in a few spoonfuls of sauce, and simmer until liquid has reduced, and chicken is no longer pink. Stir cooked chicken into sauce.
Cook 10 minutes longer to thoroughly cook chicken and mix flavors. Serves 4