Grind onion, ginger, garlic and green chilies to a fine paste. Cook rice with some salt till 80 percent done. Drain and keep aside.
Marinade mutton with the paste, 1 tbsp. oil and all the dry spices (except garam masala) for min. 3-4 hours or overnight.
Heat remaining oil and temper with bay leaves, dry red chilies, cinnamon, cardamoms, cloves, mace and sugar.
Add onion and sauté till light brown. Add mutton and cook, covered on low flame till oil separates.
Add 1 cup water and pressure cook for 15-20 min. on low flame after the first whistle.
Bring it back into the pan and add the Poppy seeds paste and cashew paste. Cook, covered for 5-10 min.
Add garam masala, kewra water and ghee. Simmer for 1-2 min. or till the gravy is thick.
In an oven proof dish layer the mutton Posto curry and over it a layer of rice. Sprinkle coriander-mint leaves, fried onions and saffron milk. covered with a lid and bake for 10-15 min at 180 degrees C.