Cut onion and capsicum in square shape and keep aside.

Boil chicken with 1/2 litre milk in a pan.

Heat oil in another pan. Add whole garam masala.

Add onion and capsicum. Saute it well.

Add chicken with the milk. Add the remaining milk.

Add salt and sugar. Cover and cook for some time on medium flame for about 2-3 minutes.

Now add chili powder and green chili.

Cook again for 2-3 minutes on medium flame stirring it on regular intervals.

Milk will thicken up and become a thick gravy.

Serve it hot with nan or rice.