To begin making Paneer Peshawari Recipe, soak the cashew nuts in hot water for 10 minutes.

Combine the soaked and drained cashews in a mixer jar and grind into a smooth paste using a mixer grinder. Transfer to a bowl and keep aside.

Heat butter in a wide pan on medium flame. Once the butter has melted, add the cumin seeds and bay leaf, let the cumin seeds sizzle. 

To this, add ginger-garlic paste, chopped onions and saute for 2-3 minutes, until the onions turn translucent and soft. 

Once the tomatoes have softened, add the cumin powder, kashmiri red chilli powder, turmeric powder, garam masala powder, coriander powder and mix well. This will help the raw smell go away from the onions, ginger and garlic.

Stir the spices for a few seconds and then add in the tomato puree and cashew paste.

Saute for the Peshawari masala for about 5 minutes on medium heat until the gravy thickens and the tomato and cashews combine well along with the spices to form a creamy gravy. 

When you add cashew nuts the gravy tends to thicken and hence you can adjust the consistency by adding 1/4 cup of water. Stir in the paneer, kasuri methi,and the honey and simmer Paneer Peshawari Recipe for another 5 minutes.

Check the salt and spices in the Paneer Peshawari Recipe gravy and adjust to suit your taste.

Once done, stir in the cream into the Paneer Peshawari Recipe and serve hot.

Serve the Paneer Peshawari Recipe for a party along with Kashmiri Pulao Recipe, Butter Garlic Naan Recipe and Boondi Raita Recipe, and Kala Chana Salad for a complete party meal.