Step by step paneer butter masala recipe:

1. Chop onion tomato roughly.Grind together onion,tomatoes along with ginger,garlic and cashews to a smooth paste.No need to add water, the juice in tomatoes is just enough.Set aside.
   
2. In a pressure pan / cooker heat butter and oil, once butter starts to melt, add jeera,cloves and bayleaf fry for 2 seconds then add onion saute till it becomes transparent.Then add onion tomato paste.
   
3. Saute for 3mins, then add red chilli,coriander and garam masala powder along with little water and pressure cook for 1 whistle.
   
4. Once pressure releases, open and simmer for few mins.Then add fresh cream,little milk and simmer the flame.
   
5. Meanwhile cube paneer and keep it ready.Add kasoori methi to the gravy, then add paneer cubes,
   
6. Mix well, add sugar and let the gravy blend well and simmer for 2mins.Then finally garnish with coriander leaves.
   

My Notes:

• I did not toast the paneer.If you wish you can toast paneer and then add it to gravy.
• Before pressure cooking it is a must to saute the tomato puree for atleast 2mins.
• I used 2 bangalore tomatoes and 1 country tomato for the tanginess.You can even use a tsp of tomato ketchup to get the tangy flavour.
• Adding cream gives a creamy and rich restaurant flavour.I used homemade fresh cream.
• The consistency should be flowing and creamy.
• For a more richer version replace milk with fresh cream itself.
• You can add half and half milk and fresh cream.
• I used homemade paneer so it was very soft and absorbed the flavour well.
• I used Kashmiri Red Chilli powder so the color was apt.