Heat the oil in a vessel. Add the dalchini/cinnamon and bayleaf and let it flavor the oil. Add the pureed onion and fry it for some time till it becomes translucent . Add ginger garlic paste and fry it and then add the red chilli , haldi and garam masala powder. Be careful and dont let the masala burn. Add the pureed tomato paste and leave it on slow fire for 10 mins. Once the masala leaves the oil. Mix the cashewnut powder with milk and add it to the gravy with 1/2 cup of water and let it simmer for 15 mins. Grind kasoori methi and cardamom seed and add the powder to the gravy along with salt and sugar. The gravy should not be very thick and check the seasoning and adjust it. Just before serving add the paneer cubes along with heavy cream and let it simmer for 2 mins with the lid closed.
Garnish it with green coriander leaves and grated paneer with a swirl of heavy cream.