Roughly cut the red onion, garlic and ginger and the green chili. Cook all this and the cashew nut together adding half a cup of water. When cool grind this to a smooth paste without adding the cooked water. Keep the water aside to use later.
Heat a pan and add olive oil add a bay leaf when it warms up reduce heat to low add the ground cashew and onion paste. When the paste slightly dries up add all the spice powders add wait till the spice aroma comes.
When the paste is cooked and dried up add the tomato paste give it a few minutes then onion cooked water. Stir well.
Add 1 cup water and from this point make sure the lid is on the pan to ensure it does not splatter even while stirring. Allow this thicken a bit. Now check if there is sufficient sauce else pour 1/2 to 1 cup water bring this to come to a rolling boil when the sauce thickens switch off heat.
Add the chopped coriander leaves and heavy cream and give it a good stir. Add the baked paneer balls(dumplings) and gently coat it with the sauce.Do not stir too much the dumplings will break.
Serving suggestions : Fragrant plain pilaf or naan or any unflavored flat bread.Some cucumber slices too.