Place the Instant Pot inner bowl into the Instant Pot. Set it in SAUTÉ mode for 10 minutes.
Add the oil into the Instant Pot. Once hot, add the whole spices: cloves, cinnamon, cardamom, bay leaves and star anise. Wait until the cloves swell up.*
Add the julienned onions to the oil. Sauté until the onions turn translucent and begin to brown around the edges.
Next, add the ginger-garlic paste and the green chilies. Sauté for a few minutes and immediately add half of the chopped herbs, followed by the tomatoes and the salt.
Continue sauteing until the tomatoes begin to soften up and let out juices. Sprinkle in the rest of the herbs.
Add the Chilli powder and mix it once. Immediately after, add the coconut milk, the water, followed by the Basmati Rice.
Give it a quick mix. Cover and SEAL with the Instant Pot lid. PRESSURE COOK for 10 minutes.
After the cooking time, QUICK RELEASE to open the Instant Pot. Give it a mix gently with a fork. Serve it hot!