Chop the onions finely. Grate or crush the garlic cloves and grate the ginger and fresh turmeric. Heat two tablespoons oil in a large pan and cook the onions, garlic, ginger, and turmeric until slightly starting to get brown, about 8 minutes, while stirring often.
Add the ground turmeric, curry powder, cumin, coriander, and black pepper and continue stirring until fragrant, about 1 or 2 minutes.
Add the chopped canned tomatoes, water, bay leaf, and salt. Bring to a boil, lower the heat and simmer for about 25 minutes.
Blend the sauce. If using a white hand blender, be aware that it will not be white anymore after making this sauce. Turmeric will make it yellow, so if you want to avoid that use a food processor, a dark-colored blender, or one made of another material other than plastic. The sauce is very hot, don't burn yourself when blending.
Adjust the taste with lemon juice, cayenne pepper, and salt.
Add the meatballs to the sauce, cover, and simmer very gently for further 10 minutes. Sprinkle with chopped cilantro and serve with rice.