Cut the Paneer into 2 inch cubes. Roast them to golden in Ghee or butter. Keep aside.
Then in the same pan, roast each ingredients in the same order mentioned under masalas to be ground. Once the tomatoes are well roasted, remove and allow to cool. Then grind to a smooth paste, using water.
Heat another pan with Cooking Oil, add the bay leaf, slit chilis. Then, ginger garlic paste. Once its fried, add red chili powder, coriander powder and turmeric powder.
Simmer for 2 mins, then add the ground paste. Simmer and cook till its starts bring oil out on the sides. Slowly add Milk and bring to boil. You can add about 1/2 water.
Cover and cook for 10 mins. Once its nicely done, add the fried paneer and simmer for 2 mins. When you are about to remove from fire, add the cream and remove. You can avoid cream if you don't like, but to go along the name, cream adds taste.
This would taste great with Naan or Parotta, I served with Chappatis.