Step 1: Prepare Gravy Base

Heat 2 tbsp oil and 2 tbsp butter in a large pan over medium heat. Add 3-4 green cardamom pods, 1 inch cinnamon stick, and 1 bay leaf. Sauté for 30 seconds until fragrant. Add 2 medium chopped onions and cook for 3-4 minutes until they turn translucent. Stir in 1 tbsp ginger-garlic paste and sauté for 1 minute until the raw smell disappears. Add 4 large roughly chopped tomatoes, 1/4 cup soaked cashews, and 1 tsp salt. Mix well and cook for 8-10 minutes, stirring occasionally, until the tomatoes soften completely and the mixture is pulpy. Remove from heat and let it cool down slightly.

Step 2: Blend Gravy

Transfer the cooled tomato-onion mixture to a blender. Add 1/2 cup of water and blend into a very smooth paste. Ensure there are no chunks remaining.

Step 3: Strain Gravy (Optional)

For a restaurant-style silky smooth gravy, pass the blended paste through a fine-mesh sieve into a clean bowl. Use a spoon or spatula to press down and extract all the liquid, discarding any fibrous solids left in the sieve.

Step 4: Cook Spices

In the same pan, melt another 2 tbsp of butter over low heat. Add 1 tsp red chili powder, 1/2 tsp turmeric powder, 1 tbsp coriander powder, and 1/2 tsp cumin powder. Sauté the spices for 30 seconds, stirring continuously, until they become fragrant. Be careful not to burn them.

Step 5: Combine Gravy

Pour the strained tomato-onion paste into the pan with the sautéed spices. Mix everything thoroughly. Increase the heat to medium and cook the gravy for 5-7 minutes, stirring occasionally, until it thickens and the oil starts to separate from the sides of the pan, indicating it's well cooked.

Step 6: Add Paneer and Finish

Add 1 tsp garam masala and 1 tsp crushed kasuri methi to the gravy. Gently add the 250 grams of cubed paneer. Mix carefully to coat the paneer without breaking it. Cook for 2-3 minutes to allow the paneer to absorb the flavors. Stir in 1/4 cup fresh cream and 1 tsp sugar (if using). Cook for just 1 minute more, ensuring the gravy does not boil vigorously after adding the cream.

Step 7: Garnish and Serve

Remove the pan from heat. Garnish generously with 2 tbsp of fresh chopped coriander. Serve the hot Paneer Butter Masala immediately with naan, roti, or steamed basmati rice.

• For a smoother gravy, strain the blended tomato-onion paste through a fine-mesh sieve.

• Adjust red chili powder and sugar quantities to your personal preference for spice and sweetness.

• Do not overcook the paneer after adding it to keep it soft and tender.

• Add some green peas along with paneer for Matar Paneer.

• Substitute paneer with firm tofu for a vegan version.

• For a richer flavor, add a pinch of saffron soaked in warm milk at the end.