Cut 200 grams of paneer into medium-sized pieces.
In a pan, add 1 tsp oil and 1 tsp butter. Add the paneer pieces and roast them on medium flame until golden brown on both sides.
Add the roasted paneer pieces into water and keep them aside.
In a mixing bowl, add ½ cup curd, ½ tsp turmeric powder, 1 tbsp red chilli powder, 1 tbsp coriander powder, 1 tsp cumin powder, and 1 tsp kitchen king masala. Mix well and keep it aside.
In a pan, add 1 tbsp oil. Add 3 spicy green chillies, 8–9 garlic cloves, 1-inch ginger, and 3 medium-sized onion pieces. Sauté until slightly golden brown. Remove onto a plate and let it cool.
Add the sautéed masala into a mixer jar. Add 1 cup coriander leaves, ¼ cup mint leaves, and 15–20 boiled spinach (palak) leaves. Add ¼ cup water and grind to a paste. The green paste is ready; keep it aside.
In a pan, add 4–5 tbsp oil. Add 1 tsp cumin seeds, 1 bay leaf, 1-inch cinnamon stick, 2 cardamoms, and 3 cloves. Sauté them.
Add the ground green paste and sauté until the oil releases from the sides.
Switch off the gas for a while and allow the gravy to cool slightly. Then add the curd masala mixture and sauté until the oil releases from the sides.
Add ½ cup hot water, mix well, cover, and cook the gravy until the oil separates from the sides.
Add ¼ cup malai (fresh cream) and mix well.
Grate 100 grams of paneer and add it to the gravy. Mix well.
Add the roasted paneer cubes and mix gently. Cover and cook the sabzi for 5–7 minutes.
Add 1 tbsp kasuri methi and some chopped coriander leaves. Mix well.
In a small tadka pan, heat 1 tbsp oil, add 1 tsp Kashmiri red chilli powder, and mix well.
Pour the tadka over the sabzi and serve Paneer Hyderabadi hot with kulcha or rice.