First heat ½ tablespoon butter in a kadhai, add bay leaf, cinnamon, cardamom, shah jeera, and cloves in it.
Once these ingredients started crackling, add chopped onion and heat it for 1 minute.
Then add ginger, garlic, and cashew nuts to it and saute it for another 1 minute.
At the end add chopped tomatoes and saute for 1 minute. Allow all the mixture to cool. Then add all the mixture into a blender and blend till the mixture turns in tick puree for curry base.
Again in a kadhai add ½ tablespoon butter, add paneer cubes into it and gently fry it for 2 minutes on low flame. Don't over fry it otherwise paneer taste will be like chewing gum.
Remove the paneer from kadhai, keep it aside and add heat 1½ tablespoon of butter on low flame, add red chilli powder in it.
Now add puree (all ingredients mixture prepared in step 4) in it and cook for 2 minutes.
Then add garam masala and 1 cup cream into it, mix it well and Cook for 2 minutes.
Further, add paneer cubes into it.
Add kasoori methi, salt, coriander powder, and a pinch of sugar.
Finally, add ½ cup hot water and chopped coriander leaves. Cover the kadhai with lead and cook butter paneer for 4 to 5 minutes on low flame.
Now your butter paneer is½ ready to serve.