Heat a kadhai with half the amount of butter. Add the bay leaf, cinnamon, cloves. Once they smell add the sliced onions.
Add the crushed coriander seeds and saute followed by the ginger garlic paste.
Now add the chopped tomatoes and salt. Cook for few minutes till the tomatoes are mushy. Switch off the flame.
Saute and then add the coriander powder and chilly powder.
Now blend the above masala into a fine paste in a blender. Heat the kadhai with the remaining butter and oil, put the pureed masala and cook on a medium flame.
Add Kasuri methi and cook till the masala leaves oil. Now add water for gravy and bring up-to boil.
Now add the Paneer cubes and cook for few minutes. Check for salt and serve with a dollop of cream.