Pound or grate the garlic and ginger.
Place a skillet or pan at medium heat and pour the oil. Once the oil heats up, add the whole spices (cumin seeds, fennel seeds, bay leaf, cardamom and cinnamon stick). Crush 1 teaspoon dried fenugreek leaves between your palms and add it to the pan. Stir it around and add the garlic ginger. Stir it around for a few seconds.
Add the onion, salt and turmeric. Mix it around and cook for 1 minute. Add the cumin powder, fennel powder and chili powder. Mix it around and cook for 2 minutes.
Pour the tomato puree, 1 cup of water, sugar and remaining ½ teaspoon of salt. Mix it around. Add the cinnamon powder, mix it around, cover the pan and let it simmer for 15 minutes.
Add the diced Paneer cubes, rest of the fenugreek leaves and garam masala. Sauté for 1 minute.
Dollop the butter, ground cashew and cream. Mix it around and simmer for 1 minute.
Serve warm with a drizzle of cream on top.