Combine together paneer, potatoes, 1 tablespoon cornflour and garam masala in a large bowl. Season with salt. Make 10 paneer balls out of the mixture.

Place 2 tablespoon cornflour in a wide bowl. Roll the balls in cornflour. Meanwhile, heat oil for deep frying in a heavy bottomed pan. Add paneer balls in batches, and deep fry until golden brown. Drain on an absorbent towel. Set aside.

Heat 1 tablespoon oil in a frying pan over medium-high heat. Add cardamoms, cinnamon and cloves. Sauté, stirring constantly, for a few seconds. Add onions, ginger and garlic. Sauté, stirring occasionally, for 2-3 minutes or until onions turn soft and translucent.

Add tomatoes and cashew nuts. Sauté, stirring occasionally, for 4-5 minutes or until tomatoes break down and turn mushy. Remove from heat. Leave to cool slightly. Grind to a smooth paste. Set aside.

Heat 1 tablespoon oil. Add bay leaf, cinnamon and cardamom pods. Sauté, stirring constantly, for few seconds or until fragrant. Add ginger and garlic. Sauté, stirring constantly, for 1 minute or until aromatic.

Add onion paste and tomato paste. Sauté, stirring occasionally, for 2 minutes or until oil separates. Add garam masala, coriander powder and red chili powder. Season with salt. Sauté, stirring constantly, for a minute.

Add sugar. Cover with enough water to make thick sauce. Bring to the boil. Simmer for 3-5 minutes. Add kasuri methi. Reduce heat to low. Stir in cream. Heat through.

Place koftas in the sauce just before serving. Garnish with chopped coriander (cilantro) leaves.