Heat oil in a pan or kadai. Add bay leaf. Add onion paste and sauté till onions cooked brown and leaves oil on surface. Add all dry spices (coriander powder, cumin powder, turmeric powder, red chilli powder, garam masala) to the pan and sauté for 3 - 4 minutes.
Add tomato puree and sauté for 2 minutes till its cooked. Then add green peas and paneer / cottage cheese cubes to the gravy.
Add ½ - ¾ cup of water to it and mix well. Season with salt. Keep it on high flame. Simmer for 5 mins.
Add coriander leaves and dry roasted kasuri methi (crushed) to the gravy. Cover with a lid.
Matar Paneer is ready to be served. Garnish with coriander leaves and serve with paratha, chapatti, rice etc.
Note: Don’t cook for long after adding paneer else it will tasty as chewy as rubber.