Add chicken, turmeric powder, salt, chili powder, and lime juice to a large mixing bowl. Mix everything well.
Press SAUTE button on the instant pot. Add oil to the pot. Once the oil is hot, add bay leaves, cinnamon, black peppercorns, cloves, and red chilies, and saute for 4-5 seconds.
Add onions and fry until lightly browned, stirring frequently (5-6 minutes).
Add ginger garlic paste and green chilies and fry until onions turn nicely browned (6-8 minutes). Then add coriander powder, garam masala powder, and cumin powder, and fry for 20-30 seconds.
Add the marinated chicken and fry for 4-5 minutes.
Now add tomatoes and yogurt and cook for 3-4 minutes, stirring frequently. Add water and mix well.
Close the lid of the pot and set the valve to the sealing position. Press PRESSURE COOK and set the timer to 6 minutes. Once the timer goes off, let the pressure release naturally for 10 minutes.
Release the remaining pressure manually and open the lid. Check for salt and add more if required. Garnish with chopped cilantro and serve.