Heat 1 teaspoon oil in a pan. Add cumin seeds and let them splutter. Add bay leaf and black peppercorns. Roughly chop the onion and add it to the pan along with chopped green chili, ginger, and tomatoes. Sauté well. Add the dry spices and cashews. Cook for 2 minutes, then turn off the heat and let the mixture cool.

In a pan, melt the butter. Add the blended gravy and sauté until the oil separates from the masala.

Cut the paneer into pieces and add them to the gravy. Pour in the cream and sprinkle garam masala powder and dried fenugreek leaves on top.

Shahi Paneer is ready. Garnish with more cream and cilantro, and serve with naan or paratha.