Heat 1 tbsp oil in a pan, add bay leaf, cardamoms, cloves, peppercorns, cassia and sauté for few seconds until fragrant.
Now add onion, cashews and sauté for 2 minutes or until onions turn soft.
Turn off the heat and let the onion and spice mixture to cool down to room temperature.
Meanwhile, in the same pan heat 1 tsp oil and sauté thawed methi (fenugreek leaves) for a couple of minutes. Transfer cooked methi to a bowl.
Transfer cooled onion mixture to a grinder, add yogurt and grind it to a smooth paste. Do not add water while grinding.
Heat 2 tbsp oil and a tbsp butter in a saucepan.
Add cumin and let it sizzle.
Now reduce the heat to the lowest possible setting, add ginger garlic paste and sauté for few seconds. Be careful as the ginger garlic paste splutters all around.
Add turmeric, chili powder, coriander powder, cumin powder, stir for few seconds until the dry spices blend well in oil. Keep stirring at low heat to avoid burning the spices.
Now mix in ground paste, water, salt and sauteed methi. Turn up the heat to medium, close the lid and cook for 10 minutes or until oil floats on top of the curry.
Now add paneer cubes, cream, mix until well combined.
Simmer for 5 minutes and turn off the heat.
Serve piping hot paneer curry with naan or rice.