Heat a pan with either oil or ghee or a combination of both.
Add cumin seeds and let it sizzle.
Add bay leaf, onions, ginger garlic paste and sauté over low flame will the onions turn pink.
Now add tomato, a pinch of salt and sauté for 3-4 mins till the tomato turns mushy
Now add capsicum, red chili powder, turmeric powder, salt, 1/4 cup water and mix well.
Close the pan with a lid and cook for 2-3 minutes.
By now the capsicum would have softened and the raw smell of the chili powder would be gone.
Now add the sliced or cubed paneer, coriander leaves, ground spice powder, mix well.
Sprinkle about 1/4 cup water, if the curry is thick.
Close the pan with a lid, leaving a small gap and let it cook for 5-7 minutes over low flame.
Switch off flame and add crushed methi leaves.
Mix well and keep the pan closed with a lid till serving.
Kadai Paneer is ready.
Serve with hot chapathis/rotis, phulkas or Naan.