Soak paneer into salty water for 10 minutes. Drain it. Cut into cubes.
Heat 2 tbsp oil in a pan. Shallow fry paneer till you see light golden color from both side.
White paste: in a pan, roast dry coconut, onion, poppy seeds and cashew nuts till light golden color. Let it be cool. Grind them into a fine paste using 2 tbsp water.
Heat 4 to 5 tbsp ghee in a kadhai. Add in bay leaf and cinnamon stick. When color changes, add in tomatoes.
Cook till tomatoes are soften and oil comes on the surface.
Now add all masala, salt and 1/2 cup water. Cook till raw smell of masala is gone.
Now add white paste and remaining water. Mix it well. Cook for few minutes.
Add paneer pieces and cook for 2 minutes.
Switch off the flame. Add fresh cream and saffron strands. Stir it well.
Rub on dried fenugreek leaves.
Serve it hot with butter kulcha.