Grind walnuts until extremely fine with a paste like consistency.
In a heavy bottomed pan and walnuts and cold water.Bring to boil and cook for 3 to 4 minutes.Turn the heat to simmer.Partially cover with lid and cook for 2 hours;stir occasionally to prevent walnuts from sticking.
Marinate chicken in salt and paprika powder for 30 minutes.
Heat butter and olive oil in a nonstick skillet on medium heat.Add chicken pieces and brown on all sides.Remove and keep aside.
To the same skillet add onion paste;saute until brown and all the water has dried up Remove and keep aside.
Once the walnut sauce has thickened and reduced in quantity,add chicken pieces,onion paste and the remaining ingredients. Cover and let cook over low heat for 45 minutes until chicken is cooked through.
Taste seasoning and adjust accordingly
Cook uncovered on high heat for 10 minutes so the sauce thickens around the chicken pieces.Turn heat off.
Garnish with pomegranate seeds and serve hot with steamed rice.
