Sauté onion, bay leaves, and cinnamon stick in ghee with salt over medium-low heat until onion is translucent and soft.

Toast cumin seeds in a skillet until fragrant, then crush half of them with a mortar and pestle.

Rinse urad dal in water until the water runs clear, reserving about 1/2 cup of water.

Push the onion aside and add the crushed cumin to the pot, cook briefly.

Stir the crushed cumin into the onion mixture.

Add the dal, the reserved water, and 2 cups of water to the pot. Bring to a boil, then reduce heat to low.

Simmer the mixture with the lid on for about 30 minutes, stirring frequently to prevent sticking. Add more water if needed.

Toast the cashews until lightly browned. Cool and coarsely chop them.

Check if the dal is tender while retaining its shape.

Remove the bay leaves and cinnamon stick.

Puree about half of the dal mixture using an immersion blender.

Add half of the chopped cashews and stir well. Season with salt to taste.

Warm the remaining ghee and toss with the remaining cashews, toasted cumin seeds, and a pinch of salt.

Serve the dal in a bowl, topped with the cashew and cumin seed mixture.