Heat the oil in a large Dutch oven over medium-high heat until hot but not smoking. Add the chiles, mustard seeds, cinnamon, and urad dal; cook, shaking the pot, until the seeds pop, about 45 seconds. Add the shallots, garlic, and curry leaves; cook, stirring, until the shallots are golden, about 4 minutes. Add the ginger; cook, stirring, 1 minute. Add the tomatoes; cook, stirring, 2 minutes.
Add the chicken; sprinkle with the turmeric and 1 1/2 teaspoons salt. Cook, stirring occasionally, about 4 minutes. Stir in 2 cups water. Bring to a boil. Cover; reduce heat to medium-low. Simmer until the chicken is very tender, about 30 minutes.
Uncover. Bring to a boil over medium-high heat. Boil until the sauce coats the meat, about 10 minutes. Season with salt. Serve with raita and pooris, if desired.
