Heat 2tbsp oil in a pan and when the oil is sufficiently hot (that is up to the smoking point) put the paneer and fry them for 10-15 seconds.
As soon as the paneer becomes brown, drain immediately in bowl of lukewarm water and reserve for later use.
In the same oil, add the onion paste and sauté for few minutes.
Once the onion becomes translucent, add the cloves, cardamoms, cinnamon and bay leaves.
Fry them for one or two-minute and then add the ginger paste.
Sauté for few minutes and then add the poppy-seed paste.
Add further the whipped curd and mix well.
Add the cumin powder, green chilies, white pepper powder and salt.
Mix them well and fry for few minutes on low heat till the oil separates out.
Add the cashew nut paste and fresh cream (can be substituted with thick milk).
Mix well and add the paneer pieces.
If requires little water (1/4cup) can be added.
Cover the lid and bring it to first boil.
Do not add all the curd at once. It will curdle the gravy. Add the curd little by little in successive batches and keep stirring it.