In a pan, add 4 tbsp oil, 1 tsp cumin seeds, 2 cloves, 3 black peppercorns, 1 star anise, 1 cardamom pod, 1 inch cinnamon stick, 1 bay leaf, 1 tsp kasuri methi, and 1 tsp coriander leaves. Sauté them.
Add 1 tbsp chopped garlic and sauté.
Then add 2 medium-sized chopped onions and sauté until they become slightly transparent.
Lower the flame, add ½ tsp turmeric powder, 1 tsp Kashmiri red chili powder, 1 tsp coriander powder, ½ tsp cumin powder, 1 tsp paneer sabzi masala, and ¼ cup hot water. Sauté the masala until the oil separates from the sides.
Add ¼ cup hung curd and mix well.
Add ½ cup tomato puree, salt, and a pinch of sugar. Sauté the gravy until the oil separates from the sides.
In a mixer jar, add 6-7 soaked cashews, 2 tbsp watermelon seeds, and ¼ cup milk. Grind to make a white paste.
Add the prepared white paste into the gravy and sauté.
Add ½ cup water and sauté the gravy until the oil separates from the sides.
Add 1 tsp chaat masala and mix well.
Add 1 large cube or 30 grams of grated paneer into the gravy and mix well.
Add 1 cup hot water and mix well.
Cover and cook the sabzi on low flame until the oil separates from the sides.
Meanwhile, in a separate pan, add 1 tsp oil and 1 tsp butter. Add 200 grams paneer cubes, ¼ tsp turmeric powder, ¼ tsp red chili powder, and a pinch of salt. Mix well and sauté for 2 minutes.
Add the sautéed paneer to the gravy and mix well.
Add 1 tsp butter and cook the gravy on low flame for 2 minutes.
Garnish with coriander leaves. Serve the paneer masala with paratha, naan, or jeera rice.
