Soak the cashews in 1/2 cup boiling water and set aside.
Soak peas in 1 cup of water and microwave them for 6-8 minutes until they are cooked.
Heat oil in a kadhai or wok over medium-high heat. Add mushrooms and saute them till they have reduced in size and start oozing out water (~8-10 minutes). Transfer the mushrooms to a plate and set aside.
Add the chopped onion slices and fry them till they soften (approximately 10-12 minutes). Add garlic cloves and ginger and fry them for a minute or two.
While the onions are frying, grind the cashews and green chilly to a fine paste.
Add the ground paste to the onions (once the onions are done) and fry them for another 5-6 minutes.
Add the pureed tomatoes, salt, garam masala, coriander, sugar,cumin powder and chilly powder and mix well. Continue to cook for another 10-12 minutes till the tomatoes get mushy and oil starts to surface.
Add the mushroom and peas back to the wok and cover the wok and let it simmer for another 5 minutes.