Clean and cut each mushroom lengthwise into half.
Cut onion and capsicum into cubes and keep aside.
Blend tomatoes in the blender and keep aside.
Dry roast coriander seeds, cumin seeds, peppercorn, red chillies, cloves, cinnamon and bay leaf together. Ground them into a fine powder.
Heat oil in a pan, add ginger garlic paste and sauté for a minute. Then add tomato paste, turmeric powder, chilli powder, ground powder and salt as needed.
Cook until tomato mixture oozes out oil. Lower the heat, add fresh cream and cook for 3 minutes.
Add the cubed onions, capsicum and mushrooms. Mix well and cook for another 2 minutes.
Add a cup of water and cook on a low flame till the gravy thickens.
Serve hot with hot rice or roti.