In a pan heat butter and oil ,add bay leaf ,peeper ,chopped onion ,ginger ,garlic and fry for 2 minute.Add cashew nut and fry for another minute.Cool the mixture .Discard bay leaf from the mixture and make a paste adding few drops of water.
In the same Pan add this paste and cook for a minute.Add tomato puree and sugar to it and saute it till the masala is done.
Add coriander powder,cumin powder,salt,cardamom powder,cinnamon powder ,chili powder and cook for a minute. Add water and let it cook at medium flame for 2 minute.
Add Paneer cubes & cook for a minute. Add crushed kasori methi (dried fenugreek leaves), cream and switch off the flame. Cover and leave it for 2 minute.
Serve hot with Indian flat bread or Dahi wali Roti.