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.
Bawarchi of the week
Bridget White-Kumar is a cookery book author, food consultant and culinary historian. Colonial Anglo-Indian food is her area of expertise. She has brought out 7 recipe books specialising in Anglo-Indian cuisine.