For Paste 1 (onion tomato paste): Grind Shallots, Tomato, garlic, Ginger, Peppercorns to a fine paste. Grind all these raw, need not saute them.
For paste 2 ( coconut paste ): Grind Coconut and Fennel seeds to a fine paste
Heat Oil, add the paste 1 (onion tomato paste) and saute until raw smell goes off.
Add cleaned chicken pieces and fry for a min or two until it gets mixed with the masala
Add paste 2/coconut paste, salt, turmeric powder, chilli powder, garam masala/curry masala. Mix well and add little water , cook it upto 2-3 whistle.