In a pan, take oil. Add bay leaf and dried red chili.
Add garlic to it and saute it. Till the raw smell of garlic goes away,
Add onions to it, saute till they are nicely caramelized and this will give a nice sweetness to the gravy
After that add the tomatoes and let it cook till they become soft.
Switch the stove off, let this cool down a little, remove the bay leaf, and blend it into a fine paste.
Do not add water to the gravy.
Add the gravy in the same pan, put salt, chili powder, and garam masala.
Let it cook till the tomatoes leave some water, put some fresh cream, butter, and milk to it. Stair the gravy.
Add sugar to it, this will bring some sweetness to the gravy Let the gravy reduce to a thicker consistency.
Put the paneer kofta’s in them, add some cheese on the kofta's. Cook for another 5mins,
Saute some onions with coriander and salt. Saute till they become brown.
Garnish the Paneer Kofta curry with some coriander, fresh cream, and sauteed onions.