Soak 2 whole dry red chili in hot water for 10-15 min.
Blend everything listed under "Tomato Paste" along with soaked whole red chili (without the water) to a smooth paste. Keep it aside.
Boil frozen peas in hot water for couple of minutes (until soft to press). Add in cubed paneer in the same boiling water, keep boiling for another minute. Once, done, drain all the water out and keep it aside.
Heat oil and butter in a heavy bottom deep pan. I like using coated cast iron pot/pan for this recipe.
Once butter is melted, add in whole dry spices listed above (peppercorn, cloves, cinnamon stick, whole dry red chili, green cardamom, bay leaf).
Saute whole spices for few second. Add in cumin seeds and saute for few more second until the cumin seeds start to fragrant and turn color into deeper brown.
Add in finely chopped onions along with minced garlic, grated ginger and 1 tsp of salt. Mix well, keep cooking till onions are completely translucent, do not brown them.
Add in tomato puree that was made earlier. Mix well. Keep cooking until half of the moisture from the tomato puree is evaporated.
Add in all the spices (1 tsp of salt, kashmiri red chili powder, cumin coriander powder, garam masala & turmeric powder). Mix well. Keep cooking until most of the moisture from the puree is evaporated.
Rub kasuri methi between your palm and add it into the gravy. Mix well.
Mix in ¼ cup of heavy cream, ¼ cup of water and 2 tsp of honey. Mix well.
Add prepped peas & paneer to the gravy. Mix gently. Add another ¼ cup of water if the gravy is too thick. Mix well and let it simmer for 2-4 minutes.
Mix in freshly chopped cilantro. Mix well. Serve it with side of paratha, salad & raita!