Heat the kadai. Add 1 teaspoon oil.

After oil is heated, add finely chopped onion and sauté till onion turns pinkish.

Next add chopped tomatoes and mix. Cover and fry till they turn mushy.

Add crushed garlic and mix well.

Add garam masala, coriander powder and red chili powder and mix well.

Next, add chopped cashewnuts and fry for 2 minutes.

Fry till the mixture becomes dry and starts releasing bit of oil from sides.

Switch off the gas and cool the mixture. Add it to blender along with 1 cup water and make a fine puree. If needed add ¼ cup more water and blend.

Take a strainer and strain the gravy. Discard the thick pulp left in the strainer. Retain only the smooth gravy which is collected in the container below.

Take the kadai and add butter.

After butter melts, add bay leaf, crushed cardamom pods and fry.

Add ginger garlic paste and sauté till raw smell goes away.

Add the strained puree and mix well. If needed add ½ cup water.

Cover and cook for 5 minutes on low flame.

When the gravy starts bubbling, add paneer cubes and mix. Simmer for 2 minutes.

Take kasuri methi between palms of the hand and crush it. Add it to the paneer butter masala gravy.

Garnish with chopped coriander leaves and fresh cream.