Heat a pan, add half of te mentioned oil, add cinnamon stick, cardamom, cloves and allow it to sizzle for a few seconds. Next add roughly chopped onions, sauté until its soft,
Once the onions are translucent, add chopped tomatoes or canned tomatoes, Ginger & garlic, green chilli , little salt and cook until the tomatoes go soft or the rawness is gone. This may take 10 minutes. Switch off the flame.
Soak cashews in warm water for 10 minutes and until then allow the onions and tomatoes to cool down.
Once onions and tomatoes has cooled down and blend it to a smooth paste along with cashews by adding about 1/2 cup water.
To the same pan, add 1/2 of butter and the remaining oil, bayleaf, red chilli powder, and mix it the butter for few seconds quickly until a lovely aroma is released. (Be careful not to burn the red chilli powder).
Add in the blended onions and tomato cashew paste we prepared earlier, and wash off the blender with remaining water (1.5 cups).
Next add nutmeg powder, garam masala, kasuri methi, honey, ketchup and mix it all in. Cover and cook in medium flame for 10 minutes.
Check for salt, and other spices and adjust if required.
Add 3 tbsp of fresh cream and Cover Cook in low to medium flame for a few more minutes on medium flame.
When it is almost ready you’ll see the paneer butter masala is glossy and has become reddish in color.
Finally add the cubed paneer pieces and turn off the flame. Transfer to a serving bowl and add in the remaining butter and fresh cream and some roasted kasuri methi leaves.