Soak cashews in hot water for 20 minutes.
Purée the cashews in a blender along with the Greek yogurt and 1/4 cup of the water the cashews soaked in until a smooth paste is formed. Set aside.
In the same blender, add the onions and purée into a paste. Set aside.
Grind the cloves, cinnamon stick, and cardamom seeds in a spice grinder. Set aside.
Heat up cooking oil in a large sauté pan over medium. Sauté the green chili for 1 minute.
Add in the onion paste. Sauté for 8 minutes.
Add in the ginger garlic paste. Sauté for 1 minute.
Add in the Kashmiri chili powder and spice powder. Sauté for 30 seconds.
Add in the cashew yogurt paste. Sauté for 2 minutes.
Pour in the milk. Simmer for 2 minutes.
Add in the mushrooms, sugar, and salt. Simmer for 5 minutes, covered.
Add in the green peas and continue simmering for 5 minutes.
Garnish with chopped cilantro.