Firstly, heat a pan on medium flame. Add onion, tomato, ginger, garlic, cashews, cloves, cinnamon and cardamom along with 1 water. Cook till onions and tomatoes soften.

Let this mixture cool down completely. Blend the mixture to a smooth puree. Keep aside.

Now heat butter in a pan on low flame.

Add bay leaf and saute for few seconds.

Further add red chilli powder, saute and add onion tomato puree. Stir well on low medium flame.

Saute the masala till butter start leaving the sides.

Meanwhile, heat butter in another pan on low flame. Saute paneer cubes in this heated butter for 2 minutes and keep aside.

Now add salt, kasuri methi, sugar, sauteed paneer cubes and water to the masala.

Stir well and simmer for 2 minutes.

Add in the garam masala and cream. Stir and switch off the flame.

Garnish with cream and serve hot with tandoori rotis, naan or jeera rice.