In a wide bowl add the ingredients under “For paneer tikka” section and mix it well and allow that to marinate for at least 30 minutes.
Meanwhile add the chopped tomatoes and cashew and grind it to a smooth paste and keep it aside.
Now heat a pan with a tablespoon of oil to grill the marinated paneer cubes, capsicum and onions.
Flip it and roast until a golden crust is formed on both the sides. Once done remove the grilled paneer and capsicum to a plate.
In the same pan add some more oil and then add the bay leaf.
Add the chopped onions and sauté. Then add the ginger and garlic paste and cook until the raw flavor goes.
Add the spice powders one by one (turmeric powder, red chili powder, coriander powder, cumin powder) and cook it for 2 minutes in low flame.
Then add the pureed tomato and cashew paste with salt and give it a mix and allow it to simmer for 10 minutes.
Once you see the oil started floating on top and thickened, add a cup of water and mix it well.
Now add the grilled paneer cubes and bell peppers to the tikka masala.
Finally add the Garam masala, Kasthuri methi and cream. Let the masala simmer for 2-5 minutes.
Then transfer the paneer tikka masala to a serving bowl and serve it with Naan, Jeera rice or roti.