Heat OIl and Ghee in a pan and saute whole spices like cumin seeds, cloves, cinnamon, cardamom and bay leaf.
Add Onions diced and saute till translucent. Add Ginger Garlic paste.
Mix thick Yogurt with Turmeric, Coriander, Garam masala, Red Chili powder and Kashmiri Chili powder. Adjust the Chili powders based on your spice preference.
Add the spiced curd to the fried onions and saute for a few minutes.
Add Sliced Tomatoes, salt and soaked Cashew nuts.
Add Warm water and Cover cook for 10-15mins till tomatoes soften.
Let it cool down and grind it to a smooth paste using bit water. Strain the puree.
Heat Butter and oil in same pan and add Sugar. Let the Sugar caramelize for a good tint. Add Coriander, Kashmiri Chili powder for an added heat and color. This is optional.
Add the strained puree and add salt if required. Cook for few minutes.
Add Fresh Cream and Kasuri Methi leaves. Add the Paneer cubes.
Add Sugar and Pinch of Cardamom powder at the end.
Creamy Easy Shahi Paneer is ready to be served! Best served with Paratha/Roti/Naan/Rice.