Heat oil/ghee/butter, in a heavy bottomed pan, add cumin seeds, bay leaf and black cardamom.
Once the cumin seeds splutter, add coarsely crushed ginger garlic paste, saute until fragrant.
Add finely chopped onions, saute until golden brown. Add little salt to help the onions sweat faster.
Now add red chilli powder, turmeric powder, cumin, and coriander powder. Saute until the masala oozes oil.
Add tomato puree, cook till it starts leaving oil. You can cover the pan and let it simmer, but stir occasionally to prevent anything from burning at the bottom.
Add cashew paste, mix it well, and cook for another minute. The masala will start to clump and oil will start to ooze.
Add about 1 & 1/2 cup water, mix it well. Add green peas, let the curry come to a boil.
Add paneer pieces, mix well.
Season with remaining spices i.e salt, sugar, crushed kasoori methi, and garam masala. Mix well. Cover and let it simmer for 5 more minutes. Add cream (if using), mix, and switch off the heat. Garnish with finely chopped cilantro leaves. Serve matar paneer gravy hot with jeera rice/pulav/ tandoori roti/naan or any other flatbread.