Heat 2 tablespoon butter in a fry pan/Kadhai. Add Cumin seeds into it and let it fry till the crackling stops.
Now add Dalchini and Laung. Fry it for 30 seconds.
Add chopped ginger, chopped green chilli and garlic to it. Cook for a minute.
Add chopped onion and cook till the onion becomes translucent.
Then add the chopped tomatoes and little salt to it. Fry it till the tomatoes become soft and tinder.
When the tomatoes become soft add the soaked cashew and fry for another 2-3 minutes.
After cooking the mixture of Tomato Onion and Cashews for 2-3 minutes, switch off the flame and allow it to cool down.
Till the time the mixture cools down, you can fry the paneer if you want so. Here I have preferred not to fry the paneer.
Now transfer the mixture to a mixer grinder to make a smooth paste of it. After grinding the mixture, take out the paste in a bowl and keep it aside.
If required you can add water to it. Remember not to add too much water because it will make the paste thin. The paste should be thick.
Again heat 1 tablespoon of butter in the same fry pan/Kadhai.
Add Kashmiri Lal Mirch into it and sauté it. Kashmiri Lal Mirch is used to give a good colour to it.
Then add the prepared onion tomato paste to the red chilli powder in the butter. Cook it for 2 minutes.
Add Turmeric powder, coriander powder and Garam masala to it and sauté it for 5 minutes.
Now add fresh cream to it and mix it well. Cook for another 5 minutes.
Then sprinkle the fenugreek seeds (Kasoori Methi) and add the paneer cubes in it. Let it boil for some time.
Add salt as per taste and sprinkle some chopped coriander over it. We had already added some salt previously, so be careful how much to add again. Stir it for some time.
After getting the desired colour and texture, switch off the flame.
Paneer Butter Masala is prepared and ready to be served.
For giving a good look, put some cream all around it, put a teaspoon of butter from above and garnish it with some chopped coriander leaves. Serve with Steamed Rice, Pulao, Naan, Jeera Rice or Tandoori Roti.