Heat 2 tablespoons ghee in a heavy handi or pan or kadai. Keep the heat to a low.
Then add 1 small tej patta, 1 inch cinnamon, 2 cloves, 2 green cardamoms and 2 single strands of mace.
Fry the spices for some seconds till they become aromatic.
Then add ⅓ cup chopped onions. Mix and begin to saute onions on a low to medium heat stirring often.
First the onions will turn translucent. Continue to saute them. For quick cooking of onions add a pinch of salt. saute till the onions turn golden.
Then add 1 teaspoon ginger garlic paste, 1 green chilli (slit) and 1 tablespoon chopped coriander leaves. sauté for some seconds till the raw aroma of ginger and garlic goes away.
Then add ½ cup finely chopped tomatoes. Mix the tomatoes and begin to saute them on a low to medium flame.
Saute till the tomatoes turn pulpy and mushy. The tomatoes have to be cooked very well and oil should release from the sauteed onion-tomato mixture.
Now add ¼ teaspoon turmeric powder, ¼ teaspoon kashmiri red chilli powder and ½ teaspoon garam masala powder.
Mix the spice powders and saute for half a minute. Then add the cashew paste. mix well.
Stirring often saute the masala till you see oil releasing from the sides.
Then add 2 teaspoons milk powder. mix again very well. Then add 1 cup water.
Stir and mix again to a smooth curry. Season with salt as per taste and mix again.
Simmer the gravy for 6 to 7 minutes on medium-low heat. When the gravy is done you will see oil specks on the top.
Add 200 grams of paneer cubes and stir to mix. Turn off the heat.
Then add ½ teaspoon kasuri methi (dried fenugreek leaves) which have been crushed. At this step, you can also add 1 to 2 pinches of nutmeg powder or grated nutmeg.
Stir to gently mix. Lastly add 2 tablespoons chopped coriander leaves. Stir and mix again gently.
Serve paneer handi hot or warm with naan or tandoori roti or khasta roti or phulka or plain paratha or lachha paratha or pudina paratha or malabar paratha or butter naan or saffron rice or jeera rice.