Place a large fry pan over medium high heat and add onion, garlic, ginger, green cardamom, green chilies, cashews and almonds. Add 2 cups of water. Let boil for 15-20 minutes.
Once cooled transfer the ingredients to a blender. Blend until it has formed a smooth paste. Set aside.`
Cut the paneer into cubes. Set aside.
Reheat the pan over medium heat. Once hot, add oil and ghee and then cinnamon stick, bay leaf and cloves. Sizzle the spices for few seconds until fragrant.
Stir in the prepared onion-nut paste and cook for 4 to 5 minutes.
Add coriander powder, red chili powder, garam masala, sugar, salt, cardamom powder and black pepper powder. Stir the spices and cook for 1 minute.
Remove pan from heat and add yogurt, being sure to whisk continuously so it doesn't curdle.
Add remaining water to the pan and add a pinch of saffron. Let the Shahi Paneer simmer for 5 to 6 minutes then add cream and simmer until fully combined.
Add the paneer moments before you want to serve your guests. Simmer for a short 3 minutes then sprinkle with cardamom powder and saffron.
Serve Vegetarian Shahi Paneer with naan or basmati rice!