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Combine the cashews and warm water in a small bowl and soak for 15 minutes. Transfer to a blender and process until completely smooth, scraping down the sides as needed. Set the cashew paste aside.
Pat the lamb pieces dry and season all over with 1 tsp salt. Heat the oil or ghee in a large Dutch oven over medium-high heat until shimmering. Working in two batches to avoid crowding, sear the lamb for 3–4 minutes per side until deep brown on at least two faces, then transfer to a plate. Repeat with the remaining lamb.
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