Heat 1 tbsp of ghee/oil in a thick bottomed pan on medium heat and fry the paneer pieces until light golden brown. Drain and keep aside.
Add the rest of the ghee in the same pan and heat it on medium heat. Toss in the cinnamon, cardamoms, cloves and shahi jeera.
When the shahi jeera starts to crackle add the chopped onion and fry until translucent.
Now add the ginger- garlic paste and sauté for 2 mins or until the raw smell disappears.
Toss in cashew nuts, almonds, raisins and green chillies and mix everything well.
Take it off the heat and let it cool down for few minutes before grinding into a fine paste.
Heat a tsp of ghee in the same pan on medium to low heat and add a bay leaf and the ground paste and sauté for 1-2 minutes.
Add the coriander powder and cumin powder and sauté for 20-30 seconds.
Add 2 tbsp of yogurt and salt, mix everything well and sauté for few minutes.
Now slowly add a cup of milk along with 1/2 cup of warm water and simmer for 4-5 minutes. (the gravy tends to get thick at this point add more water or milk if you want more gravy.)
Add the fried paneer to the gravy and simmer for 2-3 minutes.
Finally add the kasoori methi, saffron milk and garam masala. Mix everything well and simmer for a minute. **Check notes
Garnish with Coriander leaves and take it off the heat.
Serve it hot with Jeera rice or roti.