Step 1: Prepare Paneer

Cut 250 grams of paneer into 1-inch cubes. You can lightly pan-fry them in a little butter until golden brown on all sides for 2-3 minutes, or use them directly. Set aside.

Step 2: Sauté Aromatics

In a large pan, heat 1 tablespoon of oil and 1 tablespoon of butter over medium heat. Add 1 bay leaf, 1-inch cinnamon stick, and 2 green cardamoms. Sauté for 30 seconds until fragrant. Add 1 large chopped onion and cook for 5-7 minutes until it turns translucent and light golden.

Step 3: Add Ginger-Garlic and Tomatoes

Add 1 tablespoon of ginger-garlic paste and cook for 1 minute until the raw smell disappears. Then, add 3 medium chopped tomatoes and 15-20 soaked cashews. Mix well and cook for 8-10 minutes, stirring occasionally, until tomatoes soften and release their juices.

Step 4: Cook Dry Spices

Add 1/2 teaspoon turmeric powder, 1 teaspoon red chili powder, 1 tablespoon coriander powder, and salt to taste. Mix thoroughly and cook for 2-3 minutes, adding a splash of water if needed, until the spices are well combined and the oil starts to separate from the mixture.

Step 5: Blend the Gravy Base

Remove the pan from heat and let the mixture cool down slightly for 5 minutes. Remove the bay leaf and cinnamon stick. Transfer the mixture to a blender, add 1/2 cup of water, and blend into a very smooth paste. Strain the paste through a fine-mesh sieve back into the pan for an extra smooth gravy, pressing with a spoon to extract all liquid.

Step 6: Simmer the Gravy

Place the pan back on medium-low heat. Add 2 tablespoons of butter to the strained gravy. Bring it to a gentle simmer, stirring continuously for 5-7 minutes, until the gravy thickens and the butter melts and incorporates, and a slight sheen appears on top.

Step 7: Finish the Dish

Add the prepared paneer cubes, 1/2 teaspoon garam masala, 1 teaspoon sugar, and 1 teaspoon crushed kasoori methi. Mix gently. Finally, stir in 1/4 cup of fresh cream. Cook for just 1-2 minutes, ensuring the gravy doesn't boil vigorously after adding cream. Garnish with 2 tablespoons of fresh chopped coriander leaves.

Step 8: Serve

Serve hot with naan, roti, or steamed basmati rice.

• For a smoother gravy, blend the onion-tomato mixture thoroughly until no chunks remain.

• Adjust the amount of sugar and cream according to your preference for sweetness and richness.

• Always add cream at the end and don't boil the gravy too much after adding it to prevent curdling.

• Add some finely chopped bell peppers along with onions for extra crunch and flavor.

• Replace paneer with tofu for a vegan version, ensuring to use plant-based cream and butter.

• For a spicier kick, add a slit green chili or a pinch more red chili powder.