Heat oil and butter in a pan. Add bay leaf and fry for a few seconds.

Add ginger-garlic paste and fry for about a minute. (if you don't have the paste then you can also crush 1" ginger and 3 cloves of garlic in a mortar pestle and add it and fry till the raw aroma disappears)

Add tomato puree and stir well. Let it cook for 5-6 minutes.

Add red chilli powder and stir. Saute on a low flame till the oil starts to leave the sides of the tomato paste. It should take around 10-13 minutes.

Blend the cashews and milk till it forms a smooth paste. Add it to the pan. Saute on a low flame for approx 2-4 minutes till the oil leaves the sides of the masala.

Add water. (if you have cashew paste stuck to your bowl or blender you can mix this water in the bowl and then add it to avoid wasting the cashew paste)

Let the curry simmer for 2-3 minutes. Add the julienned ginger, green chilies, salt and sugar and stir. Let the curry simmer for 3-4 minutes. It should thicken now. (Adjust the salt and sugar according to your taste. Sugar will reduce the tanginess of the tomatoes.)

Add paneer cubes. You can add them directly after following cooking instructions on the pack (if store-bought) or you can fry them first for a little crunch. Cook for 2-3 minutes.

Add kasuri methi and Garam masala. Stir very well and switch off the flame. Garnish with coriander leaves.