Get the ingredients ready. Chop the Onions, garlic, and mushrooms into thin longitudinal strips. Slit the green chilly in the middle.
In a pan heat up the butter. When it melts add the bay leaf, cinnamon, and clove, followed by onion, garlic and chilly.
Once the raw smell disappears and the onion becomes translucent, add the mushrooms. Saute for a minute and cover and cook for about 3 minutes. The mushrooms would be cooked and shrunk in size.
Now reduce the flame and add the wheat flour. Mix well and saute for a few seconds. At this point, you can add ½ tbsp. more of butter if it seems to stick to the pan.
Remove pan from heat and add the hot milk to it. Stir constantly to ensure no lumps are formed.
Put it back on the stove and keep stirring on low medium flame till it becomes creamy.
Turn off the stove and allow it to cool. Discard the bay leaf, cinnamon, clove and green chilly. Reserve half of the contents and blend the other half in a mixer or a hand blender.
Return it back to the pot, add the reserved contents, salt, sugar, nutmeg, and pepper powder. Add more water (I added 1.5 cups) to adjust consistency and heat up again.
Switch off when it just begins to boil. Garnish with parsley and fresh cream(optional)