Take a pan and add 2 cup of warm water. Add orange colour to the water and then add paneer cubes so that they can get orange coloured. This step is optional if you don’t want to add colour you can skip this step.
Now take 2 onions and all bell peppers and cut them into small pieces.
Now take a pan/kadhai and put one tablespoon of oil and then add these onion and bell pepper to it. Sauté this till they get little soft and crunchy. It will take around 5-6 minutes. Now transfer them onto a plate.
Now in the same pan add 2 tablespoon of oil and add asafoetida. Now add cumin seeds, coriander seed (or powder if you do not have seeds) and sauté.
Once it becomes brown add 2 chopped onions.
When onion turns pinkish brown add ginger and garlic (or can use paste of these) and sauté till raw smell goes off. Now add all spices mentioned above (except bayleaves, cloves and garam masala) and sauté till they ooze oil. Then add chopped tomatoes and cook for 5 minutes. Take this mixture/ gravy out and blend it to a smooth paste by blender.
Take a fresh pan. Add bayleaves and cloves, and add the smooth paste from step above. Now add paneer cubes and sauteed bell pepper and onions and mix. Add Garam masala, mix and lastly butter along with Kasuri methi and cook with the lid on for 5-6 minutes.
Kadhai paneer is ready to be dished. Don’t forget to garnish with coriander leaves or with grated cheese.