Heat 2 tbsp of oil in a pan on medium heat. Once the oil is hot, add the bay leaf, cumin seeds and dry red chillies saute for few seconds.
Then add the the roughly chopped onion, roughly chopped tomatoes and cashew nuts. Add turmeric powder and salt.
Cover the pan and cook on medium heat for 10 minutes or till the vegetables are cooked.
Let the mixture cool down a bit and then transfer to a blender. It’s important to let it cool down a bit else it will all blow up from the mixer.
Grind the masala to a smooth paste and set aside.
To the same pan now add butter along with remaining 1 teaspoon oil on medium heat.
Once the butter melts, add the red chili powder and the Kashmiri red chili powder and fry for few seconds. This will give the curry a nice orange-red color.
Then add the ground paste back into the pan along with the garam masala and 1 cup of water if requried.
Sprinkle crushed fenugreek seeds and fresh coriander leaves.
Then add the condensed milk, cream and mix.
Add in the paneer and cook for 2 to 3 minutes on medium heat.
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