Instructions:
- Lightly shallow-fry paneer cubes until pale golden. Immediately transfer fried paneer to a bowl of warm, salted water to keep them soft. Set aside.
- Heat butter/ghee in a skillet over medium heat. Add whole spices (bay leaf, cardamom, cinnamon, cloves) and sauté for 30 seconds until fragrant.
- Add chopped onions, ginger, and garlic to the skillet. Cook until onions are translucent, about 5–7 minutes.
- Add chopped tomatoes, Kashmiri chilli powder, turmeric, and coriander. Cook down until tomatoes break down completely (about 8–10 minutes). Remove whole spices like the bay leaf and cinnamon stick if desired.
- Transfer the cooked mixture to a high-powered blender. Add the soaked cashews and the 1/4 cup of milk. Blend until absolutely smooth, aiming for a pudding-like consistency.
- Pour the blended mixture back into the hot skillet through a fine-mesh sieve, pressing with a spoon to extract all the smooth liquid. This ensures a velvety finish.
- Bring the strained gravy to a gentle simmer. Stir in salt and sugar. Let it simmer gently for 5 minutes, stirring frequently.
- Drain the soaked paneer cubes and gently fold them into the simmering gravy. Cook for only 2–3 minutes to warm through without toughening the cheese.
- Stir in the Garam Masala and crushed Kasuri Methi. Turn off the heat and stir in the heavy cream until just combined. Adjust seasoning if necessary.
- Garnish lavishly with fresh cilantro and serve hot with Naan or Basmati Rice.