To prepare the gravy, heat oil in a pot and add all the whole spices to it. Now add roughly chopped onion and saute it until light brown in colour. Now add ginger, green chilli, garlic and cashew nuts to it and saute it for 2 minutes. Now add tomato and salt to it and cook for 5 to 7 minutes. Add half cup of water and cook further for 3 to 5 minutes. Turn off the heat and let it cool down completely. When it cools down, make a paste in a mixture grinder. Strain the gravy.

Heat oil and butter in a pan. When it is hot, add bay leaf and cumin to it. When cumin is brown, add ginger and garlic paste to it and saute it for a minute. Now add onion and capsicum to it and cook it for 2 minutes on medium heat. Now add red chilli powder, coriander cumin powder, turmeric and salt to it and mix everything well. Now add prepared gravy to it along with paneer pieces and cook it for 4 - 5 minutes on medium heat. You can add water according to your requirements.

Now add kasuri methi, garam masala and fresh cream to it and cook it on medium heat for 2 to 3 minutes. Add coriander leaves and turn off the heat.

To give the smoky flavour to the gravy, heat charcoal on naked flame on the gas stove until it is red. Now put a small bowl inside the gravy and put the hot charcoal in it. For a teaspoon of ghee over it and cover it for 5 - 7 minutes. Remove the bowl and mix everything well.