In a pot, heat the oil and sauté onions until golden. Add the whole spices: bay leaf, cardamom, cinnamon, and whole black peppers.
Add onion paste, ginger paste, and garlic paste, along with the powder spices: turmeric, coriander, cumin, Kashmiri red chili powder, garam masala, and salt. Sauté for 5-7 minutes until the oil starts to separate from the mixture. You can add a splash of water to prevent this curry paste from burning.
Stir in tomato paste, coconut milk, and chicken stock (or water).
Dscard the outer brittle layer of the lemongrass. Cut the inner layers into long sticks and bruise them with a knife. Add to the sauce.
Nestle the meatballs into the sauce. Add basil leaves on top, cover, and simmer 10-15 minutes for the meat to cook through.
Garnish with cilantro and serve hot with white rice.