Well, it is obviously Bollywood- I mean the right spelling. However, everyday, I see some people visiting this blog by searching the term “Bolly wood”. So, for them my advice is that remember to search next time the correct spelling. By typing “Bolly wood” instead of “Bollywood” you may end up to the wrong place.
As for coming the right place, this blog is a great place to read about Bollywood. You will more than 100 entries about Bollywood here.