Heat three tablespoons butter with one teaspoon oil in a kadai. Add bay leaves, cloves, cinnamon, red chillies and half of the crushed coriander seeds. Sauté for half a minute.
Add onion and stir-fry for thirty seconds and add ginger paste and garlic paste. Cook for another thirty seconds. Add coriander powder, red chilli powder and tomatoes. Cook on high heat till oil leaves the masala. Puree the mixture.
Heat the remaining butter in a pan, cook the pureed mixture for two minutes. Add paneer pieces and salt. Add half a cup of water. Cook covered on low heat for five minutes.
Sprinkle kasoori methi and mix in lightly. Remove from heat and mix in cream. Serve hot, garnished with remaining crushed coriander seeds.