Stir together curry powder, garam masala, salt, smoked paprika, cumin, and pepper in a small bowl; set aside.
Toss chicken, garlic, and ginger with 2 tablespoons curry mixture in a medium bowl; set aside.
Set InstantPot to saute. Add oil or ghee.
Add onion to Instant Pot; sprinkle with remaining curry mixture.
Cook, stirring occasionally, until onion is slightly softened, about 5 minutes.
Stir in tomato paste; cook, stirring constantly, until fragrant, about 1 minute.
Add 1 to 2 tablespoons water to InstantPot to deglaze bottom of pot, if needed. Stir to release any browned bits.
Add chicken mixture to Instant Pot. Cook 3 minutes; turn chicken, and cook 2 minutes more, stirring occasionally to prevent sticking (add more water, if needed).
Add canned tomatoes and coconut milk to InstantPot; stir to combine.
Place top on InstantPot; twist to seal and lock. Turn Steam Release Valve to “sealing.”
Set InstantPot to cook at High Pressure for 7 minutes.
After cooking is complete, manually release the pressure by turning the Steam Release Valve to “venting.”
Remove lid from InstantPot; Let cool 5 minutes. Stir in yogurt until smooth; add honey gradually, to taste.
Serve over rice; garnish with cilantro and lime wedges.