Chop one large onion into very small pieces and set aside.
Add roughly chopped onions, bell peppers, inch of ginger, garlic, and Thai chilies to a food processor.
Pulse the ingredients until you get very small chunks, it shouldn't be smooth or a paste.
Heat a pan on medium heat and add the olive oil. Once hot, add the chopped onions, thyme and bay leaves. Sautee until translucent, add blended ingredients, salt, paprika, black pepper and continue stirring for about 10 minutes.
Add tomato paste along with 2 tbsp. of water and stir for another 10 minutes. Then add the remaining water, let it boil for few minutes, taste, adjust seasoning if needed and simmer in low heat for 20 minutes. Please stir occasionally to avoid sauce sticking to the pan.