Heat oil and butter in a pan.
:- Adding oil prevents the butter from browning too quickly.
Add bay leaf and fry for a few seconds till the oil turns fragrant.
Add ginger-garlic paste. Fry till the raw smell of the ginger garlic disappears.
Add the tomato puree. Stir for 5-6 minutes.
Add red chilli powder. Stir and continue to saute for 12 minutes in low flame.
Add fresh cream or cashewnut paste. Stir continuously on a low flame till oil gets separated from the masala.
Add 1 cup of water. Let the curry cook on low flame.
When the curry begins to thicken, add slit green chillies, salt and ½ tsp sugar and stir for few seconds.
Add paneer cubes. Stir gently and let the paneer cook in the gravy till it becomes soft.
Add kasuri methi leaves and garam masala powder and stir well.
Garnish with coriander leaves.