Heat a pan and add the ingredients in the order of: cumin seeds, fennel seeds, whole coriander seeds, black pepper, bay leaf, dry red chili. Stir on low flame for 3-4 minutes.
Add onions to the pan and fry until they turn light brown.
Grind ginger, garlic, green chilies in a mixer jar without adding water until they form a coarse paste.
Add tomatoes to the pan with some salt and cover it on low flame for 8-10 minutes.
Cut paneer into medium pieces and add them to the pan. Fry for 1-2 minutes.
Add capsicum, onion, green chili to the pan and fry for 1 minute.
Add tomatoes to the pan with some salt and cover it on low flame for 8-10 minutes.
Grind spices in a blender until they form a smooth powder.
Heat oil or ghee in a pan and add cumin seeds. Fry until they turn brown.
Add ground spices to the pan and fry for 5-7 minutes.
Add fresh cream or curd (yogurt) to the pan and mix well. Cook on low flame for 3-4 minutes.
Add hot water as per requirement to adjust the consistency of the gravy.
Cook the gravy on low flame for 1.5-2 minutes.
Add fried paneer and vegetables, roast dry fenugreek, garam masala and kadahi masala to the pan. Mix well.