Instructions:
- Prepare the Paneer (Optional): Lightly toss the paneer cubes with turmeric powder, 1 tsp Kashmiri red chilli powder, and a pinch of salt. Lightly pan-fry in 2 Tbsp oil or ghee until barely golden on all sides. Set aside.
- Soak Cashews: Place cashews in a small bowl and cover them with 1/2 cup of hot water. Let them soak for at least 30 minutes.
- Sauté Aromatics: In a heavy-bottomed pot, briefly sauté the chopped onions, tomatoes, ginger, garlic, and green chillies in a little oil or ghee until softened and tomatoes begin to break down (about 8–10 minutes). Let this mixture cool slightly.
- Blend the Gravy Base: Transfer the cooled sautéed mixture, along with the soaked and drained cashews, into a blender. Add a splash of water if necessary and blend until absolutely smooth. This must be a fine puree.
- Strain for Silkiness: Push the entire blended puree through a fine-mesh sieve into a clean bowl, using the back of a spoon to ensure maximum smoothness. Discard any fibrous residue left behind.
- Temper Whole Spices: Heat the 3 Tbsp of ghee or butter in the same pot over medium heat. Add the bay leaf, cinnamon stick, crushed cardamom pods, and cumin seeds. Fry until the cumin sizzles and the spices are fragrant (about 30 seconds).
- Bloom Powdered Spices: Reduce heat to low. Quickly stir in the 1 Tbsp Kashmiri chilli powder, coriander powder, and garam masala. Cook very briefly (15 seconds max) to bloom the spices, being careful not to burn them.
- Cook the Puree: Pour the strained gravy base into the pot. Stir well to combine. Bring to a gentle simmer and cook, stirring occasionally, for 5–7 minutes until the gravy thickens slightly.
- Enrich and Finish: Stir in the heavy cream, milk, sugar, and salt/pepper to taste. Add the steeped saffron milk. Simmer gently for another 5 minutes; avoid boiling vigorously once the cream is added.
- Assemble and Rest: Gently fold the prepared paneer cubes into the simmering gravy. Crush the kasuri methi between your palms and sprinkle it over the top. Simmer for 2 minutes. Turn off the heat, garnish with fresh coriander, and let the Shahi Paneer rest for 5 minutes before serving with Naan or Rice.