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Heat oil in a pan and shallow fry the paneer cubes until golden brown. Drain and set aside.
In a handi or pan, heat oil and add cumin, whole coriander seeds, bay leaves, cardamom, green cardamom, cloves, and cinnamon stick. Sauté for a minute.
Add sliced onions and sauté until translucent.
Add ginger-garlic paste and sauté for a minute.
Add chopped tomatoes and salt. Cook until the tomatoes are soft.
Add curd, cumin powder, coriander powder, fennel powder, turmeric, and red chili powder. Mix well and cook for a few minutes.
Add the fried paneer cubes and water as required. Simmer for 5-7 minutes.
Add Kasuri Methi and mix well.
For the tadka, heat desi ghee in a small pan. Add whole coriander seeds, green chillies, Kashmiri red chillies, fennel powder, and garam masala. Sauté for a minute.
Pour the tadka over the paneer do pyaaza and mix well.
Garnish with onion petals and serve hot with naan or rice.