In a medium-sized bowl, combine the yogurt, Kashmiri chili powder, and regular chili powder. Set this mixture aside for later.
Heat the ghee in a large pot over medium heat. Once hot, add the diced onions and sauté until softened, which should take around 5 minutes. Next, add the minced garlic and ginger, continuing to sauté for another 30 seconds.
Turn the heat up to medium-high, then add the chunks of chicken. Season with salt and sauté for about 3-4 minutes until the chicken is well-seared.
Pour in the water and use it to deglaze the pan, scraping any browned bits from the bottom with a wooden spatula.
Turn down the heat to very low before gently stirring in the spiced yogurt mixture, ensuring it's well-mixed with the chicken and onions. Now, add the spice bag to the pot.
Let the mixture simmer gently with the lid on for about 30 minutes, making sure to stir occasionally. Be careful to keep the heat low, as too much heat can cause the yogurt to split.
After 30 minutes, uncover the pot and remove the spice bag at this point.
Check the taste and adjust the seasoning with more salt, if necessary.
Serve the chicken rogan josh hot, garnished with a sprinkle of fresh cilantro.