Season chicken with 1 tablespoon of salt and 1 teaspoon black pepper. Set aside. In a large saucepan, heat the ghee. Stir-fry the onions until glossy. Season with the remaining 2 tablespoons salt, 2 teaspoons black pepper and sugar. Continue to stir-fry until soft but do not allow to brown.
Add the garlic, ginger, jalapeno, bay leaf, and garam masala. Stir-fry for 1 to 2 minutes until spices bloom and become aromatic.
Add the reserved seasoned chicken pieces, tomatoes, tomato paste, potatoes, and 4 cups of chicken stock. Slowly bring to a boil, stirring occasionally. When mixture comes to a boil, lower to a simmer and cook until chicken pieces are done, about 30 minutes. Add more chicken stock as necessary. Taste and adjust seasoning with salt, pepper, and sugar.
In a large saute pan, combine the black peppercorns, cloves, cardamom seeds, cumin seeds, coriander seeds, cinnamon sticks, and dried red chiles. Over medium heat, cook just until slightly toasted, stirring constantly. Turn off heat and stir in the grated nutmeg and turmeric.
Transfer to a food processor and grind to a fine powder. Pass through a fine strainer. Allow to cool to room temperature. Store in an airtight jar. Use as needed.
Recipe courtesy of Wolfgang Puck, 2002