Cut paneer into small pieces and fry to a red colour.
Wash and soak cashew nuts in water for 1 hour, then drain out the water.
Heat 2 tbsps oil and add all the spices, bay leaves and coconut and fry for 5 minutes.
Put in tomatoes and curd, sugar and salt and cook till dry.
Cover with water, bring to a boil, reduce heat and add cashew nuts and cook till the gravy turns a little thick, add the paneer and simmer gently for 5 minutes.
Remove from fire and garnish with coriander leaves.
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Anamika Sharma is a passionate foodie, a food blogger with a background in aviation and telecom industry for a good 15 years. Her mission is to spread her love for Indian cooking to all those who think it is too difficult.