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Heat 2 tbsp oil in a large saucepan, then add the onions and cook for 5 minutes until softened. Add the garlic, chilli and cashew nuts and cook for 5 minutes more on a low heat.
2 Add the tomatoes, then cover and cook on a low heat for 10 minutes, until the tomatoes have softened. Set aside to cool for 10 minutes, then blitz to a purée in a blender.
Heat 2 tbsp oil in the same pan and add the cardamom, cinnamon and bay leaf and allow to sizzle for a few seconds. Add the purée, with 200ml water, and cook on a low heat for 15 minutes, stirring occasionally. Add the salt and ground spices and mix well as it cooks.
In another flat pan, heat the remaining 2 tbsp oil. Add the paneer and cook on a high heat for 1 minute each side, or until golden. Add to the cooked masala, stir well, then mix in the cream.
Heat the butter or ghee in a small pan. Once melted, add the cashews and cook on a low heat for 1-2 minutes until lightly golden. Pour it over the paneer curry, sprinkle the coriander and sliced chillies on top, then serve.