Heat 1 tsp of butter in a pan and saute chopped onions along with soaked cashews till golden in color. Turn off the gas and allow it to cool. Once the mix is cool, transfer it to a mixer grinder jar and add little water and grind into a fin
In the same pan add grated khoya with 1-2 tsp of butter and fry til brown in color. Keep aside to cool.
Heat oil/ butter in a wok and add bay leaf along with kasuri methi, ginger and green chili paste. Fry for few seconds.
Now add the onion and cashew paste in the wok and fry well till you get the aroma.
Now add pureed tomatoes along with coriander powder. red chili powder, garam masala and cumin powder and fry nicely till oil starts leaving the sides.
Once the gravy starts to thicken ad in the khoya and stir well such that the khoya incorporates well.
Season the curry with salt as required and a pinch of sugar and mix well.
Add 1/2 a cup of milk to make the curry, give it a boil and then reduced the flames and allow the curry to cook for few minutes with lid closed.
Once the curry is done, drop in the paneer cubes and gently mix the curry.
Garnish the khoya paneer curry with a swirl of fresh cream on top along with some grated paneer and chopped coriander.