Blanch onions, green chillies and tomatoes. Puree the blanched onions and green chillies. Heat 2 tblspoon oil in a pan. Add cumin seeds, green cardamom, cloves and bay leaf, after few seconds add onion and green chilli paste and saute on medium flame.

Remove the skin of blanched tomatoes. Then in a mixer jar add blanch tomatoes, ginger and garlic and make a smooth paste. Now add tomato paste and saute for more few minutes. Then add turmeric powder, coriander powder, red chilli powder, Kashmiri red chilli powder and salt, mix them very well. Saute all masalas on low flame till oil separates. Now add khoya and mix well.

After mixing khoya very well, then add 2 cups milk, cashew nuts and 1/2 tspn sugar and mix it. Add milk as needed for gravy and mix well. Add paneer cubes and mix well. Cover with the lid and cook on low flame for 2-3 minutes. Then add crushed kasuri methi, ghee and garam mashala powder, mix it well, switch off the flame and cover it for another few minutes. Garnish with roasted cashews. Khoya paneer is ready. Serve it with paratha or hot rice.