Press SAUTE mode on Instant Pot. Add ghee, and once it's hot, add Bay leaf, cinnamon stick, cardamom, and cloves. *Vegans can use oil instead of ghee.
Then add sliced onions, green chilies, ginger-garlic paste. Saute for 2-3 minutes until they turn light brown - stir regularly.
Add mint, coriander leaves, yogurt (curd), turmeric powder, red chili powder, biryani masala powder, and fried paneer and mix well.
Add rinsed Basmati Rice, water, salt, and give a quick stir.
Close the Instant Pot with pressure valve to Sealing. Cook on High Pressure for 5 minutes.
Once the pot beeps, Wait for NATURAL PRESSURE RELEASE(NPR).
Squeeze some lime juice, mix well, and Pressure cooker Paneer Biryani is ready to serve with Onion Raita or plain yogurt.