Take 200 grams paneer cubes, soak in warm water for 15 minutes, drain and set aside. I always cut paneer into small cubes for it to absorb the flavor well.
To a pan add 2 medium sized onion sliced and saute until it turns transparent.
Add 4 medium sized tomatoes roughly chopped along with 10 cashews.
Saute for a minute until it shrinks in volume.
Cook covered for 5 minutes or until raw smell of tomatoes completely leave.
Open and give a quick mix. Cool down.
Transfer to a mixer jar.
Grind it to a fine puree, set aside.
Rinse the pan, add it back and switch on the flame. Heat 1 tablespoon butter - add 1 small bay leaf, one 1 inch cinnamon, 1 clove, 1 cardamom and 1/2 teaspoon cumin seeds. Give a quick saute.
Add 1 heaped teaspoon kashmiri red chili powder and give a quick saute. Now add 1 teaspoon ginger garlic paste and 1 green chili.
Give a quick saute.
Add onion, tomato puree along with 1/2 cup mixer rinsed water.
Give a quick mix and cook covered as it splutters a lot at this stage. Cook for 5 minutes.
Now open and add salt to taste, 1/2 teaspoon sugar, 1 teaspoon red chili powder, 1 teaspoon coriander powder, 1 teaspoon garam masala powder and 1/2 teaspoon cumin powder.
Give a quick mix. Cook for 2 minutes.
Now add drained paneer cubes. Give a quick mix.
Add 1/4 cup fresh cream,1 tablespoon butter, 1 teaspoon crushed kasoori methi and 1 tablespoon coriander leaves.
Give a quick mix.
Restaurant style paneer butter masala is ready!