Heat oil in a pan; add bay leaf, cinnamon stick, green cardamoms, cloves and black pepper corns. Sauté for few seconds and add chili and ginger. Sauté again for few seconds; then add chopped tomatoes, cashews and melon seeds. Mix well and add ½ cup of water and little salt, cook this mixture for few minutes or until tomatoes are soft.
Let this mixture cool down and then grind into fine gravy. Set aside.
For Chilli Milli:
Heat oil and butter in a pan; add cumin seeds. Once the color of cumin seeds change, add asafoetida, slitted green chillies and all the vegetables. Mix well.
Add salt, red chilli powder, cumin powder, coriander powder and garam masala or kitchen king masala, mix well and cook for 2-3 minutes. Add prepared gravy, mix and turn flame on low to medium. Cook it for 10-12 minutes or until vegetables are thoroughly cooked. Keep stirring in between and add some water if needed.
Once veggies are cooked, add paneer cubes, crushed Kasoori methi and add water for desired consistency if needed. Turn off the heat and take it in serving bowl. Garnish with chopped coriander and serve hot with Roti, Paratha or Naan.