Heat 2 tbsp of ghee/oil in a large frying pan or skillet on medium high heat. When hot temper it with dried red chillies, black cardamom, green cardamoms, cinnamon, cloves, mace and sauté until you get a beautiful aroma of the spiced.
Then toss in the chopped onions and saute for 3-4 minutes until soft and translucent.
Add the ginger and garlic paste and saute until the raw smell disappears.
Next toss in the tomatoes and cashews along with 1/2 tsp of salt and saute for 3-4 minutes until the tomatoes are soft.
Add in the turmeric powder, chilli powder, coriander powder and nutmeg powder and saute for 2-3 minutes and take it off the heat. Let it cool.
Add the masala along with 2 tbsp of water in a mixer grinder and ground it into a fine and smooth paste.
In the same pan add the rest of the ghee/oil heat it on medium heat. When hot temper it with bay leaves saute for 10 seconds. Then slowly pour in the prepared masala paste and cook in medium heat stirring continuously for 7-8 minutes, until you see little oil seeping through and the masala pulls from the sides.
Now add 1 cup of water and bring it to a boil, stirring intermittently.
Add salt and sugar/sweetener and continue cooking on medium heat for a minute.
Now slide in the paneer cubes and the grated paneer and mix everything well. Cover and cook for 5-6 minutes on low heat, stirring intermittently.
Finally add in kasoori methi and garam masala and mix well. Cook for another two minutes and take it off the heat.
Garnish with coriander leaves and serve it hot with naan or paratha or jeera rice.