Heat 2 tbsp ghee in a pressure cooker over medium heat. When hot, add 1 bay leaf, 2 cloves, 1 cinnamon stick, 3 peppercorns and 3 cardamom pods; sauté about 30 seconds until fragrant.
Add 2 medium red onions, finely sliced, and sauté, stirring occasionally, until they are golden brown (about 8–10 minutes).
Add 1 tbsp garlic (finely chopped) and 1 tbsp ginger (finely chopped); cook 1–2 minutes until the raw smell subsides.
Add 250 g mutton (washed and cleaned). Increase heat to medium-high and brown the meat, stirring, for 4–5 minutes so it is coated with the onion–ginger–garlic mixture.
Reduce heat to medium-low and add 1/2 cup curds, 1 tbsp Kashmiri red chili powder, 1/2 tsp turmeric powder, 1 tsp coriander powder, 1/2 tsp cumin powder and salt to taste. Stir well to combine and cook 2–3 minutes so the spices and curds coat the meat.
Add 1/2 cup water, stir, cover the pressure cooker and cook on low heat for 6–7 whistles (until the mutton is tender and falls off the bone).
Allow the cooker to release pressure naturally. Open the cooker, add 1/2 tsp garam masala powder and 1 tsp lemon juice; stir gently to combine.
Garnish with chopped coriander leaves and serve hot with phulkas or rotis.