Cut paneer into 1–1.5 inch cubes. In a medium saucepan bring 1 liter water and 1 tsp salt to a simmer. Add paneer cubes and simmer gently for 2–3 minutes to remove any residual whey and make them tender. Drain and spread on a plate lined with paper towel. If using store-bought firm paneer, you may soak in warm salted water for 10 minutes and then drain.

Optional light pan-fry

If you prefer paneer with a slight crust, heat 1 tbs butter or 1 tbs oil in a nonstick skillet over medium heat. Lightly pan-fry cubes 1–2 minutes per side until pale golden. Remove and set aside. This step is optional but helps paneer hold shape in the sauce.

Masala & Sauce

Heat 3 tbs butter and 1 tbs oil in a wide skillet or kadhai over medium heat. The oil prevents butter from burning and helps temper spices.

Add 1 tsp cumin seeds, 2 crushed green cardamom pods and 1 bay leaf. Sauté for 20–30 seconds until fragrant, taking care not to burn the cumin.

Add 1 cup finely chopped onion and a pinch of salt. Cook, stirring occasionally, until the onion is soft and turns light golden (6–8 minutes). This builds the base sweetness of the gravy.

Stir in 1 tsp ginger paste and 1 tsp garlic paste. Cook 1 minute until raw smell disappears.

Pour in 1.5 cups tomato puree and 1 tsp tomato paste (if using). Bring to a gentle simmer and cook, uncovered, stirring occasionally, until the raw tomato smell is gone and oil starts separating at the edges — about 8–10 minutes. Reduce heat if the mixture splatters.

Lower heat and add 1 tsp kashmiri red chili powder, 1 tsp ground coriander, 0.25 tsp turmeric, and 1 tsp salt. Stir and cook 2 minutes to roast the spices lightly in the tomato base.

If the sauce seems too thick, add 2–4 tbs water to reach a saucy consistency. Stir in 0.5 tsp sugar to balance acidity.

Using a hand blender or a small blender, pulse the sauce briefly (1–2 short bursts) to smooth some texture while leaving a bit of body — optional. Return to heat.

Reduce heat to low and slowly stir in 0.5 cup heavy cream in a steady stream to create a rich, silky sauce. Reserve a tablespoon of cream for garnish if desired. Simmer gently 2 minutes; do not boil vigorously after adding cream to avoid splitting.

Add the prepared paneer cubes to the simmering sauce. Gently fold to coat and simmer 3–4 minutes so paneer warms through and absorbs flavor. If you pan-fried the paneer earlier, it will retain its slight crust; if boiled, it will remain soft.

Sprinkle 0.5 tsp garam masala and 1 tsp crushed kasuri methi over the curry. Stir gently and cook 1 more minute. Taste and adjust salt or a pinch more sugar if needed.

Garnish & Serve

Turn off heat. Drizzle the reserved tablespoon of cream over the top, garnish with 2 tbs chopped cilantro and optional slit chili. Serve hot with steamed basmati rice, naan, roti or paratha. Offer lemon wedges on the side for those who like a bright squeeze.