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Heat olive oil in a skillet over medium heat. Saute onion until lightly browned. Stir in garlic, curry powder, cinnamon, paprika, bay leaf, ginger, sugar and salt. Continue stirring for 2 minutes. Add chicken pieces, tomato paste, yogurt, and coconut milk. Bring to a boil, reduce heat, and simmer for 20 to 25 minutes. Remove bay leaf, and stir in lemon juice and cayenne pepper. Simmer 5 more minutes.