Take cubed onion, tomatoes, cashews, peeled ginger, green chili, cardamom, cloves, garlic, cumin seeds and pepper corns in a mixer jar. Add some water and grind to a fine paste.
Heat 2 tablespoons butter in a pan. Add a bay leaf and saute for 1 minute. Add the ground tomato paste, chili powder, turmric powder. Mix well and saute we. Cook till the fat is released from sides.
Add 1 1/2 cup water and season with salt. Cover and cook till the gravy thickens and reache desired consistency.
Add cubed paneer and simmer for 5 minutes. Garnish with cream, kasuri methi and serve paneer makhanwala hot.
Notes
1. You can leave out cashews and cream for a low fat version 2. Cook the spice paste well until raw smell goes off