Step 1: Prepare the Gravy Base - Sauté Spices and Aromatics

Heat 2 tablespoons of oil in a pan on high flame. Add bay leaves, cinnamon stick, black cardamom, star anise, peppercorns, and cloves. Sauté for a few seconds until fragrant. Add roughly cut onions and sauté until they start to soften. Then, add ginger, garlic, and green chili paste, mixing well.

Step 2: Add Tomatoes and Powdered Spices

Add roughly cut tomatoes to the pan. Stir in turmeric powder, garam masala, and coriander powder. Mix everything thoroughly.

Step 3: Simmer the Gravy Base

Pour 1 cup of water into the pan. Cover and allow the mixture to simmer for 20-30 minutes on medium flame until the tomatoes and onions become mushy.

Step 4: Process the Gravy Base

Once the base is cooked, remove the large whole spices (bay leaf, cinnamon stick, black cardamom, star anise). Let the mixture cool completely. Blend it into a fine, smooth paste and then strain it through a sieve to remove any remaining solids, ensuring a silky texture.

Step 5: Prepare the Final Gravy - Temper Spices

Heat 1 tablespoon of oil or butter in a clean pan on high flame. Add green cardamom. Once the oil is hot, add Kashmiri red chili powder and stir quickly until the oil turns a vibrant red color. Be careful not to burn the chili powder.

Step 6: Combine with Gravy Base and Dairy

Pour the strained yellow gravy base into the pan and stir well. Add 1/4 cup of cream and 1/4 cup of yogurt/curd, mixing thoroughly until fully incorporated.

Step 7: Season and Finish the Gravy

Add salt to taste and mix. Sprinkle Kasoori Methi over the gravy. Add the diced paneer cubes. Allow the Shahi Paneer to simmer for about 2 minutes on moderate flame, letting the flavors meld.

Step 8: Serve Shahi Paneer

Garnish with a generous spoonful of fresh cream and a sprinkle of coriander leaves (optional). Serve hot with butter naan, laccha paratha, or rice.

• Ensure to remove large whole spices from the gravy base before blending for a smoother texture.

• Do not burn the red chili powder during tempering, as it can spoil the taste and color of the gravy.

• Simmer the gravy well after adding water to allow all flavors to meld and the starch to thicken.

• Adjust the consistency of the gravy with water or stock to your preference.

• For a quicker version, you can use pre-made yellow gravy or makhani gravy bases available in stores.

• You can add a pinch of saffron soaked in warm milk for an extra rich flavor and aroma.