Heat 2 tbsp of oil/ghee in a thick bottomed pan on medium heat. Add dried red chilli, bay leaves, cinnamon, cardamoms, cloves and cumin seeds.
When the cumin seeds splatters, add chopped onions and fry until translucent.
Then add ginger-garlic paste and fry for 2 mins or until the raw smell disappears.
Add the chopped tomato along with some salt and sauté until soft and mushy.
Next add turmeric, chilli, cumin and coriander powder along with 2 tbsp of water and mix every thing well.
When you see the oil separating from the sides of the masala, add the cashew nuts and raisins and mix everything well.
Now take it off the heat and let it cool for few minutes. Then make a fine paste of this masala by adding little milk while grinding.
Marinate paneer with turmeric powder and some salt. In the same pan add 1 tbsp of oil/ghee and fry till golden brown and take it off the heat and keep it aside.
Then add in the mushrooms with a pinch of salt and sauté until mushrooms are lightly browned. Take it off the heat and keep it aside.
Now heat the rest of the oil/ghee, add the masala paste along with the green peas, stirring continuously making sure it does not stick to the bottom.
Add the rest of the milk and 1 cup of hot water and simmer 3-4 minutes.
Now add the sautéed mushrooms and mix everything well.
Add the panner cubes along with kasoori methi and garam masala powder and mix everything up together and continue cooking for another 2 minutes.
Finally add chopped coriander leaves and take it off the heat. Serve it hot with parathas, naan or jeera rice.