Add the cashew halves to a small bowl, and pour the boiling water over the top. Let sit 15-20 minutes to soften the cashews.
Heat the oil in a large skillet over medium heat. Add the garlic, ginger, and bay leaves to the skillet, and cook until fragrant, 2-3 minutes. Add the onion to the skillet and cook until softened. Add the coriander, garam masala, cumin, turmeric, and chili powder to the skillet, and stir to combine.
Add the chicken to the skillet, and cook until lightly browned. Stir in the tomato paste and chicken broth, and bring the mixture to a simmer. Cover, reduce heat, and simmer 15 minutes.
Toward the end of the simmer time, add the cashews and water, heavy cream, and yogurt to a food processor or blender. Blend until very smooth.
Pour the cream mixture into the skillet and stir to combine. Bring the sauce to a simmer and simmer for an additional 10-15 minutes, until thickened and creamy. Serve hot over rice.