Method:

If you are using frozen paneer cubes, then defrost them. step-1 Grind 2 medium onion (chopped), 1½ teaspoons chopped ginger and 3-4 garlic in a grinder and make onion paste. Grind 6-8 soaked cashew nuts with 2 tablespoons water to make cashew nut paste. Make the tomato puree by crushing the 3 medium tomatoes in the blender or mixer grinder. You can blanch the tomatoes before making the puree for better result. step-2 Heat 2 tablespoons cooking oil and 2 tablespoons butter in a non-stick frying pan over medium flame. Add onion paste and1 small bay leaf and sauté until onion paste turns light brown for approx. 4-5 minutes. step-3 Add 2 green chillies and 1 teaspoon red chili powder and sauté for 30-40 seconds. Add cashew nut paste. step-4 Stir and cook for 2-minutes. step-5 Add tomato puree and cook until oil starts to separate from the puree, it will take around 3-4 minutes. step-6 Add 1 tablespoon coriander powder and 1/2 teaspoon garam masala powder and mix well. step-7 Add 1/2 cup milk, 1/2 cup water and salt; mix and cook until oil comes on the surface or for approx. 4-5 minutes. step-8 Add 250 gms paneer cubes, 2 teaspoons kasuri methi and cook for approx. 2-minutes or until you get the desired consistency of gravy. step-9 Add 2 tablespoons fresh cream. step-10 Mix properly and turn off the flame. l_step Transfer prepared curry to a serving bowl. Garnish Punjabi paneer butter masala with milk cream or cube of butter and serve.