Set Instant Pot to Saute mode. When the pot is hot, add butter. Let the butter melt.
Add bay leaf and cinnamon stick. Saute for 30 seconds.
Add chopped onion. Cook for 1-2 minutes until the onion has softened and started to brown.
Add minced ginger and garlic. Cook for a minute until the raw smell has disappeared.
Add Curry powder, turmeric powder, chili powder, and paprika. Mix well and cook for another 30 seconds.
Add Chicken pieces. Mix everything well and saute for a minute along with the spice mixture.
Then stir in basmati rice, carrot, and peas. Mix everything well and cook for 1-2 minutes to toast the rice a little bit. (Ref Note 3)
Add Chicken Stock/Water to the pot.
Add salt. Check the seasoning and add more salt if required.
Close the instant pot lid. Cook on Manual mode( High Pressure) for 7 minutes.
After the cooking time is complete, let the pressure release naturally for 10 minutes, then do a quick release.
After opening the lid, let it sit for another 10 minutes. Then using a spatula, gently fluff the rice.
Sprinkle fresh celery/coriander leaves.
Serve with some yogurt or Cucumber raita.