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Place the cashews in a small heatproof bowl and pour the boiling water over them. Let soak for 15 minutes, then transfer the cashews and soaking water to a blender and blend until completely smooth and creamy, about 1 minute. Set aside.
Heat the oil in a large saucepan or Dutch oven over medium heat until shimmering. Add the onion, cinnamon stick, cardamom pods, and bay leaf and cook, stirring occasionally, until the onion is softened and golden at the edges, about 8–10 minutes.
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