Add 1 cup of water into the Instant pot insert.Place the trivet.
Put the onions, tomatoes, cashew nuts, ginger, garlic, whole spices and 1 cup of water into a deep pan.Place the pan over the the trivet.
Close the lid on the pot, and turn pressure valve to SEALING position.
Set the pot to MANUAL/PRESSURE COOK (High Pressure) and set timer to 8 minutes. Once the pot beeps, let the pressure release naturally.
Puree cooked onion-tomato mixture using a hand blender until smooth. If you don’t have a hand blender ,puree in a blender in batches once slightly cooled.
Then i usually sieve the onion tomato puree for silky texture and discard the residue but its totally optional.
Press SAUTE on Instant Pot.Add butter/oil in to the POT. Once hot add cumin seeds and saute for 30 seconds.
Add kashmiri red chili powder, bay leaf, give a quick stir.
Then add onion-tomato-cashew pureed mixture. Mix well and cook for 2-3 minutes.
Add the paneer, kasoori methi, garam masala, salt. Mix well and bring the mixture to boil.
Finally, gently stir in the cream and paneer butter masala is ready to serve.
Serve hot with chapati, naan, rice and onion slices.