Wipe the mushrooms with damp paper towels and slice. Heat the oil in a medium saucepan over medium heat. Add the onion and chile and cook, stirring, for 5-6 minutes, until the onion is softened but not brown. Add the garlic paste and cook, stirring, for 2 minutes.
Add the cumin, coriander, and chile powder and cook, stirring, for 1 minute. Add the mushrooms, salt, and tomato paste and stir until the ingredients are blended. Sprinkle the water evenly over the mushrooms and reduce the heat to low. Cover and cook for 10 minutes, stirring halfway through. The sauce should have thickened, but if it appears runny, cook uncovered, for 3-4 minutes, or until you achieve the desired consistency. Transfer to a serving dish, sprinkle the chives on top, and serve immediately.