Cut Paneer into cubes. add chopped Capsicum, Oil, Turmeric, Kashmiri Chilli powder and Salt to it.
Mix it gently so that the Paneer does not break.Marinate and keep it aside.
Heat oil,add Bay leaves, dried Kashmiri Red Chilli, Green Cardamom, Cinnamon, Black Pepper, Cloves, Cashew Nuts, Ginger-Garlic and roughly chopped Onion.
We do not need to saute onions too much, just when they get pinkish add the roughly chopped Tomatoes.
After this, we will add Kashmiri Red Chilli Powder, Turmeric, Coriander and Salt.We will saute it for 2 minutes and then add water.
Cover and let it cook for 5 minutes or little more on high flame till the tomatoes are soft.
Turn off the stove, cool down the gravy masala and then grind it.
Again,heat oil.Add Cumin seeds to the hot oil, let it crackle for a few seconds.
Then add Ginger-Garlic paste, and finely chopped Onions.
Saute the Onions till they turn golden brown,then add finely chopped Tomatoe,Salt and Red Chilli on top of the Tomatoes.So that the Tomatoes release their water quickly and dry up.
After that, we will add Kashmiri Red Chilli Powder, Turmeric and Coriander.
Saute it on low flame for a few seconds and then add marinated Paneer,Shimla mirch that we had kept aside.
Keep on tossing it for 5 minutes.
Now,strain the gravy masala over the paneer also adding Green Coriander paste,
a mashed piece of Paneer, it will make the gravy thick.
Also drop in dry Fenugreek Leaves and Butter.
Garniesh Paneer Lababdar with Cream and serve with Naan or Biryani.