Heat oil in a pan. Sauté chopped onions on high flame for 1 minute.
Add garlic and cook for 2 minutes until slightly brown.
Stir in ginger and cook for 1 minute.
Add cashew nuts and cook for 2 minutes.
Add chopped tomatoes, cook for 5 minutes until soft and golden.
Transfer this mixture to a blender, blend with ¼ cup water to form a smooth paste.
In the same pan, heat oil. Add cumin seeds and bay leaves, cook for 1 minute.
Add red chili powder, coriander powder, turmeric powder, and garam masala. Stir well.
Add the blended masala paste to the pan. Stir and cook for 5 minutes, until the gravy thickens.
Add green peas to the gravy, mix well, and cook for 2 minutes.
Add paneer cubes and gently mix. Cover and simmer for 5 minutes.
Add 1½ to 2 cups of water (adjust based on desired consistency). Stir and cook for 5-7 minutes until the peas and paneer soften.
Turn off the heat, garnish with fresh coriander leaves.
Serve hot with roti, naan, or steamed rice