In a non-stick pan, add cloves, cinnamon, cardamom, bay leaf, coriander seeds, cumin seeds, and red chillies.
Fry till aromatic.
Add sliced onions and keep stirring. Cook for a min.
Add tomatoes and cook. Add salt and cover the lid.
We are trying to use as less oil as possible. But if you think that the onions might get burnt, you can add 1 tsp oil.
Once the tomatoes become soft and tender, turn off the flame.
Let it cool and blend to a smooth paste.
In the same pan, add butter or oil.
Add ginger-garlic paste and sauté till the raw flavor is gone.
Add the slit green chillies.
Add the cubed onions and diced capsicum and sauté.
Add a little salt and toss the ingredients.
Now add the blended paste and stir well.
Add water to adjust the consistency.
Check the seasoning and add salt if needed.
Once the mixture comes to a boil, add cubed paneer and mix well.
Let the paneer cook in the masala for 5 mins with the lid closed.
Add fresh cream and mix well.
Garnish with finely chopped coriander and turn off the flame.