Heat oil in a large nonstick pan over medium heat. Add cloves and cardamom pods and wait until they sizzle, about 1 minute. Add onions and fry until dark brown, 7 to 10 minutes. Add chile peppers, ginger, and garlic; cook until fragrant, about 30 seconds. Add ground chile pepper, turmeric, cumin, coriander, and salt. Cook, stirring frequently, until blended in, about 1 minute more.
Stir chicken and water into the pan with the spice mixture. Cook, while stirring, until water is incorporated, 2 to 3 minutes. Add tomato puree and nutmeg and cover the pan with a lid. Cook until chicken is tender over medium heat, about 20 minutes. When ready to serve, sprinkle with garam masala and cilantro.