Wash, dice and keep paneer cubes in warm water till ready to use. This will help in keeping it soft.
In a pan, melt a tablespoon of butter. Add onion, ginger garlic and green chilli. Saute.
Once onions are translucent, add few cashews and saute 2-3 mins.
In goes tomatoes and salt. Saute till tomatoes are mushy.
Turn off the flame, let the fried ingredients cool down.
Transfer to a mixer blender, add little water and blend it into a very smooth paste. Keep the ground masala aside.
Time to make base masala gravy
Heat 2 tbsp butter. Add a piece of cinnamon, an elaichi and bay leaf. Lower the heat, add haldi, red chilli and dhania powder. Mix. This helps in giving nice and rich colour to the gravy.
Add kasoori methi and saute
Add the ground masala paste and fry it for 3-4 minutes on medium flame till it leaves oil .
After masala starts leaving oil .. add water as required depending on the consistency you prefer. Simmer and bring to boil.
When the gravy is boiling .. add cream and sugar.
Lastly, add paneer cubes and garam masala powder. Cook for 1-2 mins. Overcooking makes Paneer rubbery.
Lastly, garnish the gravy with chopped coriander leaves, switch off .
Tasty creamy Paneer butter masala is ready. Enjoy with Roti , naan , jeera rice etc.