Warm the olive oil in a skillet over medium heat. Sauté the chopped onion until it turns a light golden brown.
Mix in the minced garlic, curry powder, ground cinnamon, paprika, bay leaf, grated ginger, sugar, and salt. Keep stirring the mixture for about 2 minutes to let the spices release their aroma.
Add the bite-sized chicken pieces to the skillet, followed by the tomato paste, yogurt, and coconut milk. Stir well and bring the mixture to a boil. Once boiling, lower the heat and let it simmer for 20 to 25 minutes, ensuring the chicken is thoroughly cooked.
Remove the bay leaf, then mix in the lemon juice and cayenne pepper. Allow it to simmer for an additional 5 minutes to let the flavors meld together.
Serve the chicken curry hot and enjoy your meal!