Cut capsicum and panner into cubes. Add oil and butter in a pan and add cinnamon and cloves to it.
Let it infuse in the oil. Add onion and saute well. Add capsicum to it. After a minute add tomato capsicum and saute well. Add all the masala powder together with salt and add panner to it. Saute well.
Add milk to the mixture. Let it cook for few minutes. When it's done oil starts floating on top. Add fresh cream to the gravy and switch off the flame. Capsicum paneer malai gravy is ready to serve.
Garnish it with coriander leaves and slice of tomato. Serve Capsicum Paneer Malai Gravy with rotis or rice.