To make kadhai masala, dry roast cinnamon, green cardamom, cloves, cumin seeds, fennel seeds, coriander seeds till fragrant. Cool it and grind it into a coarse powder.
Heat oil along with 1tbsp butter in a pan, add bay leaf, saute it and then add chopped onions into it. As the onions get little brown then add ginger-garlic paste into it, cook it. Add Kashmiri Red Chilli Powder, turmeric powder, roasted kadhai masala into it.
Cook masalas on low flame and then add tomato puree, kasoori methi and salt to it. Mix and cook all very well. Add onion cubes and capsicum cubes into it. Cook it all for 5 minutes on low flame by covering it with a lid.
Add paneer cubes, fresh cream, 1 cup of water. Cook it all for 2 minutes on high flame and then low the flame.
Take a tadka pan, add 1 tbsp of each oil and butter, dry red chilli, 1/2 tbsp of coriander seeds into it. Cook it for few seconds on low flame and then pour it in the kadhai. Mix it and then put the kadhai on low heat for 2 more minutes by covering it with a lid. Switch off the flame and then serve it.
