Usually cashews are used in paneer butter masala to thicken the gravy and make it rich. Here the cashews are used with a twist to give a different way to prepare the dish. Cashew paneer butter masala is a simple yet rich preparation.
Cut the paneer into small cubes and place in a plate. Grind the cashews to a fine powder and coat the paneer liberally with it. Add the rest of the ingredients for marinade and mix properly. Cover and keep in the refrigerator for 1 hour.
After 1 hour, heat a non stick tawa and add 1 tbsp of butter. Add the marinated paneer and cook till golden brown. Keep aside.
Grind the onions, garlic and ginger into a fine paste.
Heat a wok and add oil. Add the bay leaf, cinnamon and cloves. After the aroma is released, add the onion paste and cook for 5-10 minutes till the raw smell goes away.
Grind the tomatoes into a paste and add to it and cook for another 10 minutes.
Now add turmeric powder, red chilli powder and salt and cook for another 5 minutes. As the oil starts separating, add 2 cups of water and make it a thin gravy.
After it starts boiling, add the milk and simmer for another 7-8 minutes.
Now add the paneer pieces and mix gently. Cook for another 2 minutes and remove from stove.
Let it stand for another half an hour so that the paneer soaks in the gravy.
Before serving, add a tbsp of butter and sprinkle the chopped coriander. You can also heat it for 2 minutes in the microwave before serving.
Notes
Dont mix the curry too much once the paneer is added. This will prevent the paneer from breaking down.