Take all the ingredients mentioned under "Grind to a paste" in a mixer jar.
Grind to a smooth paste without adding water. If too thick, then add just 2 to 3 tbsp water.
Stovetop Pressure Cooker Method:
To a pressure cooker, add butter or oil. Add bay leaf, Paneer cubes, ground paste, red chilli powder, sugar, kasuri methi, milk, salt and give a mix.
Close with lid and pressure cook for 2 whistles over medium flame. After the pressure gets released on its own, open the lid and mix well. Transfer to the serving bowl and serve garnished with a dollop of cream on top and coriander leaves.
Instant Pot Method:
Turn on the Instant Pot in "saute" mode. Add butter or oil, bay leaf, paneer cubes, ground paste, red chilli powder, sugar, kasuri methi, milk, salt and give a mix.
Cancel the "Saute" mode and switch to "Manual - High" mode and set the time for 4 mins. Close with lid and make sure the 'Vent' is in 'Closed' position.
Once the cooking is complete and finishes off with the beep sound, wait for natural pressure release (npr). Open the lid and mix well to combine. Transfer to the serving bowl and serve garnished with a dollop of cream on top and coriander leaves.