Chop the tomatoes into large cubes and puree it without adding any water. Keep it aside.
In a pan, heat the oil or butter and then fry the cinnamon stick, bay leaf and cloves until aromatic.
Now add the tomato puree slowly and mix well. Keep the flame low as the mixture tends to splatter a bit.
Add the dry masala – red chili powder, turmeric powder, garam masala and salt and mix. Keep the pan covered and cook until the mixture thickens and starts to leave the sides of the pan. Make sure that you cook the masala in low heat as it cook easily stick to the bottom of the pan and burn. Keep stirring every now and then.
Add the cashew paste and mix well.
Let it cook in low flame for 2 minutes and then carefully add the milk
and the paneer pieces. Check the consistency of the gravy and adjust if
needed by adding a little bit more milk.
Cover the pan and let it simmer for about 8 – 10 minutes.
Now add the kasuri methi and mix. Cook for another 2 minutes and then remove from heat.
Serve hot with phulkas, roti or rice!