Heat clarified butter in a kadhai and add lotus seeds. Saute lotus seeds until they turn crisp and their color changes to light golden. Keep aside.
In a blender jar, make a smooth puree of tomatoes. Next, make a paste of cashew nuts in a blender jar and set aside.
Boil green peas for 5 minutes on medium heat.
Heat oil in a kadhai on medium heat and then add cumin seeds, cinnamon stick, bay leaf, mace, and crushed green cardamoms.
Saute for 10 to 15 seconds. Now, add crushed ginger-garlic mixture. saute until the raw aroma of garlic disappears.
Add chili powder, tomato puree, and then mix well. Add turmeric powder, coriander powder, and mix well. Add whole red and green chilies, and mix well with the spices. Add a little water and stir for 1 minute.
Add kashmiri red chili powder and cashew nut paste and mix well. Next, add dried fenugreek leaves and mix well.
Add milk and cream. Then, continuously stir for 1 minute. Add green peas, mix well, and cover and cook for 1 minute.
Add lotus seeds, mix well, and then add salt and sugar.
Add 1 cup of water and then cover and cook for 5 minutes. Simmer until the gravy reaches the desired consistency which is neither thick nor thin.