Firstly, in a large kadhai heat butter and saute onions, cashew and red chilli. Further add tomatoes and saute till they turn mushy.
Cool completely and blend to smooth paste without adding any water.

Furthermore, heat butter and saute bay leaf and cardamom,also add salt, Kashmiri red chilli powder and garam masala powder and saute on very low flame for 20 seconds.

Further add prepared onion-tomato paste and saute for 5 seconds,
also cover and simmer for 10 minutes or till the oil separates from the gravy.

Further add cream and mix well.
then add cubed paneer pieces and coat the gravy by mixing gently.
cover and simmer for 5 minutes.
lastly add kasuri methi. mix well.

Finally, paneer butter masala/ panner makhani is ready to serve with roti or naan