Heat oil. Add lightly crushed cloves, black peppercorns, black cardamoms, green cardamoms, bay leaves, mace (javitri), and a cinnamon stick, and fry for 3-4 seconds.
Add thinly sliced onions and green chilies (slit into half) and fry until they turn slightly brown, stirring frequently (6-8 minutes).
Add chopped ginger and chopped garlic and fry till onions turn golden brown in color (6-8 minutes). Stir frequently while frying.
Now add mutton and cook for 3-4 minutes.
Add water and salt and stir well.
Secure the lid of the instant pot and set the valve to the sealing position.
Press PRESSURE COOK and set the timer to 20 minutes at high pressure. Once the pressure goes off, let the pressure release naturally for 10 minutes. Release the remaining pressure manually by moving the valve to the venting position. Open the lid of the pot.
Press Saute button again. Add plain yogurt, Kashmiri red chili powder, turmeric powder, coriander powder, and fried onion to the pot and mix well.
Cover the instant pot with a regular lid and cook until oil separates and masala is nicely browned (12-15 minutes). Stir at regular intervals.
Add garam masala powder and chopped cilantro and mix well. Serve bhuna gosht hot with phulke or naan.