Grind cashew nuts with roasted coriander seeds into smooth powder and keep aside until required.
Blanched onion to medium coarse paste in a grinder.
Heat oil in a kadai (or pan) over medium flame.
Add cloves, bay leaf, cinnamon and green cardamom.
When they begin to crackle, add crushed onion.
Stir-fry until it becomes light brown for approx. 3-4 minutes.
Add ginger-garlic paste, turmeric powder, red chilli powder, coriander powder, a drop of red food color, cashew nut powder and stir-fry for a minute.
Add crushed tomato puree and salt.
Stir-fry for 2-minutes.
Add curd, sugar and 1/3 cup warm water.
Mix them and let mixture boil until oil starts to separate.
Takeaway kadai from flame and let the mixture cool for 5 minutes.
Discard whole spices (cloves, bay leaf, cinnamon and green cardamom), transfer mixture to a blender jar and blend it to smooth puree in blender or food processor.
Again, transfer it to same kadai and place on the gas.
Add fresh cream, garam masala powder and dissolved saffron.
Mix well and cook for a minute.
Add cottage cheese cubes and mix properly to coat them with gravy.
Garnish it with fresh cream, grated cheese and coriander leaves serve hot with naan.