Heat a non-stick or cast-iron skillet over medium heat. Add the oil and sauté the paneer until golden-brown and crisp, about 10 to 12 minutes. Transfer to a plate lined with paper towels and keep aside.

Heat 2 Tbsp ghee in a medium Dutch oven or stockpot over medium-high heat. Add the cardamom and sauté until fragrant, 30 to 45 seconds. Add the onion with a pinch of salt and sauté until they turn translucent and soft, 4 to 5 minutes. Add the garlic and ginger, and sauté for 1 minute, until fragrant. Fold in the tomatoes and tomato paste. Cook covered, stirring occasionally, until the tomatoes break down, 15 to 20 minutes.

Transfer the mixture to a blender and pulse over high speed until smooth.

Wipe the Dutch oven clean and add the remaining oil. Heat over medium-high. Add the cinnamon, bay leaf, garam masala, Kashmiri chilli powder, coriander, and turmeric and cook until fragrant, 30 to 45 seconds.

Fold in the ground onion-tomato mixture with 1 cup/240 ml water. Stir in the kasoori methi and sugar. Add the paneer and peas, cover with a lid, and bring to a boil; reduce the heat to low and cook until the gravy thickens, 5 to 10 minutes. Stir in the yogurt. Taste and season with salt if needed.

Garnish with the chilli and the cilantro. Serve hot. Leftovers can be stored for up to 4 days in an airtight container in the refrigerator or up to a month in the freezer.