Melt 1 tablespoon of butter in a cooking pot. Add cumin seeds, bay leaf, cinnamon stick, black cardamom, green cardamoms, cloves, and black peppercorns. Saute for a few seconds or until the spices become fragrant.
Add roughly chopped onion and garlic. Cook until the onion becomes translucent.
Add roughly chopped tomatoes, green chilies, ginger, cashew nuts, salt, and ½ a teaspoon of red chili powder. Mix everything. Add around ½ a cup of water and cover the pot. Cook for around 15 minutes or until the tomatoes turn mushy and then switch off the stove.
Allow the mixture to reach temperature and then transfer to a blender or food processor and blend to make a paste. If it's too thick, add some water.
Strain the mixture with the help of a large strainer to get a smooth, creamy paste.
Heat around 1 teaspoon of butter in a pan.
Add 1 very finely chopped garlic and saute for a few seconds or until its raw smell goes away.
Add turmeric powder. ½ a teaspoon red chili powder, and some kasoori methi. Saute for a few seconds.
Add paneer cubes and saute for 1-2 minutes.
Next, add strained tomato paste and cook for 2-3 minutes.
Add cream, garam masala, and the remaining kasoori methi. Mix everything and switch off the stove.