Melt the butter in a kadai, then add the cumin seeds and bay leaf and fry until fragrant.

Add the roughly chopped onions and sauté, stirring frequently, until softened and lightly golden.

Stir in the ginger-garlic paste and green chilies, and cook until the raw smell disappears.

Add the chopped tomato, cashews, turmeric powder, and water, then cook until the tomatoes soften completely.

Let the mixture cool slightly, then blend it into a smooth, creamy paste.

In the same kadai, sauté the chopped fenugreek leaves briefly until they wilt and their raw bitterness mellows.

Pour the blended gravy back into the kadai with the fenugreek leaves and bring it to a gentle simmer.

Cover and simmer the gravy on low heat, stirring occasionally, so the fenugreek flavor infuses through.

Add the fresh cream and milk, then stir well to loosen the gravy to a smooth, pourable consistency.

Gently fold in the paneer cubes, sugar, and garam masala, and simmer just until the paneer is warmed through.

Turn off the heat and let the curry rest so the flavors settle before serving.