Step 1: Marinate Paneer

In a bowl, combine the cubed paneer with 1/4 teaspoon turmeric powder, 1/2 teaspoon red chili powder, and 1/4 teaspoon salt. Mix gently to coat all the paneer pieces. Set aside to marinate for 10-15 minutes.

Step 2: Prepare Aromatic Base

Heat 2 tablespoons of oil and 2 tablespoons of butter in a large pan or kadai over medium heat. Once hot, add 1 bay leaf, 1 inch cinnamon stick, 2-3 green cardamom pods, and 3-4 cloves. Sauté for 30 seconds until fragrant.

Step 3: Sauté Onions

Add 1 large finely chopped onion to the pan. Sauté the onions on medium heat for 5-7 minutes, stirring occasionally, until they turn golden brown and translucent.

Step 4: Add Ginger-Garlic Paste

Stir in 1 tablespoon of ginger-garlic paste. Cook for 1-2 minutes, stirring continuously, until the raw smell of ginger and garlic disappears.

Step 5: Incorporate Tomato and Cashew Paste

Add 1 cup of tomato puree and 2 tablespoons of cashew paste to the pan. Mix well to combine with the onion mixture.

Step 6: Cook Dry Spices

Add 1/2 teaspoon turmeric powder, 1 teaspoon red chili powder, 1 tablespoon coriander powder, 1/2 teaspoon cumin powder, and salt to taste. Mix thoroughly and cook for 5-7 minutes on medium-low heat, stirring occasionally, until the oil starts to separate from the masala.

Step 7: Simmer Gravy

Pour in 1/2 cup of water, mix well, then cover the pan and let the gravy simmer on low heat for 10 minutes. This allows the flavors to meld.

Step 8: Lightly Fry Paneer (Optional)

While the gravy is simmering, heat a small amount of butter in a separate pan. Lightly pan-fry the marinated paneer cubes until they are slightly golden on all sides. This step is optional but adds texture.

Step 9: Finish Gravy

Uncover the gravy. Add 1/2 teaspoon garam masala, 1/4 cup fresh cream, and 1 teaspoon crushed kasoori methi. Mix everything well until the cream is fully incorporated and the gravy is smooth and rich.

Step 10: Combine Paneer

Gently add the lightly fried paneer cubes to the finished gravy. Stir carefully to coat the paneer without breaking it.

Step 11: Garnish and Serve

Garnish with 2 tablespoons of fresh chopped coriander. Serve hot with naan, roti, or rice.

• For a smoother gravy, blend the cooked onion-tomato mixture before adding cream.

• Adjust the spice level by increasing or decreasing red chili powder.

• Soak cashews in warm water for 15-20 minutes before grinding for a smoother paste.

• Add a pinch of sugar to balance the tanginess of tomatoes.

• Replace paneer with tofu for a vegan option, or with chicken for a non-vegetarian version.

• For extra richness, add a tablespoon of almond paste along with cashew paste.